Semtech (NASDAQ:SMTC) Issues Q3 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) issued an update on its third quarter 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.020-1.080 for the period, compared to the consensus estimate of 0.690. The company issued revenue guidance of $405.0 million-$415.0 million, compared to the consensus revenue estimate of $359.3 million.

Analyst Ratings Changes

A number of research firms have recently weighed in on SMTC. Citigroup cut shares of Semtech from a “buy” rating to a “market perform” rating in a research note on Tuesday, May 26th. TD Cowen boosted their price objective on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research report on Monday, June 22nd. UBS Group lifted their target price on shares of Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Wednesday. Needham & Company LLC reiterated a “buy” rating and issued a $200.00 price target on shares of Semtech in a research report on Wednesday. Finally, Benchmark restated a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. Fourteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $201.44.

Semtech Price Performance

Shares of NASDAQ:SMTC opened at $140.80 on Thursday. The business has a fifty day simple moving average of $135.94 and a 200-day simple moving average of $118.62. Semtech has a 52 week low of $55.18 and a 52 week high of $177.35. The company has a market cap of $13.12 billion, a P/E ratio of 93.25 and a beta of 2.35. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 23.54%. The company had revenue of $341.87 million during the quarter, compared to analysts’ expectations of $328.67 million. During the same period in the previous year, the company earned $0.41 EPS. The business’s quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Equities research analysts forecast that Semtech will post 1.81 EPS for the current year.

Insider Buying and Selling at Semtech

In other Semtech news, COO Asaf Silberstein sold 8,500 shares of the company’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the transaction, the chief operating officer directly owned 96,862 shares of the company’s stock, valued at $12,378,963.60. This represents a 8.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the transaction, the executive vice president owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 21,734 shares of company stock valued at $3,133,986. 0.44% of the stock is owned by company insiders.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported fiscal Q2 2027 adjusted EPS of $0.71, above the $0.61-$0.62 analyst consensus, while revenue rose 32.7% year over year to $341.9 million, exceeding estimates of approximately $328.7 million. The quarter marked continued year-over-year earnings growth and record sales. Chipmaker Semtech Smashes Sales, Earnings Targets
• Positive Sentiment: Management issued fiscal Q3 revenue guidance of $405 million to $415 million and adjusted EPS of $1.02 to $1.08, well above Wall Street expectations of roughly $359 million in revenue and $0.69 EPS. The outlook is the main catalyst behind the stock’s rise. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: The earnings call highlighted a 91% increase in data-center sales, demand tied to artificial-intelligence infrastructure, a ramp toward 1.6-terabit connectivity, record backlog and capacity expansion. Management also pointed to LoRa growth and potential margin improvement following its planned cellular-business divestiture. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Analysts reaffirmed Buy ratings and raised or maintained price targets, including targets of $200, $215 and $230, citing data-center growth, profitability upside and margin expansion. Unusually heavy call-option activity also signaled bullish short-term trading interest.
• Neutral Sentiment: The cellular-business divestiture represents a strategic shift toward higher-growth data-center markets, but execution, supply constraints and the need to convert backlog into sustained revenue remain important risks for investors.
• Negative Sentiment: Reported insider trading data showed company executives made multiple sales and no purchases during the past six months. While such transactions may be routine, the selling provides a modest counterpoint to the otherwise favorable earnings news. Semtech Posts Record Sales in Fiscal Q2

Institutional Investors Weigh In On Semtech

Several institutional investors and hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC raised its stake in Semtech by 24.1% during the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 247 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of Semtech by 1,215.4% in the 3rd quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company’s stock worth $61,000 after purchasing an additional 790 shares during the last quarter. Strs Ohio bought a new stake in Semtech in the first quarter valued at $65,000. Daiwa Securities Group Inc. raised its holdings in shares of Semtech by 100.8% during the fourth quarter. Daiwa Securities Group Inc. now owns 1,195 shares of the semiconductor company’s stock valued at $88,000 after buying an additional 600 shares during the last quarter. Finally, Jones Financial Companies Lllp boosted its position in shares of Semtech by 12,214.3% during the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock worth $89,000 after buying an additional 2,565 shares during the period.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.