Semtech’s (SMTC) “Buy” Rating Reiterated at TD Cowen

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating reaffirmed by stock analysts at TD Cowen in a report released on Friday, Benzinga reports. They presently have a $215.00 target price on the semiconductor company’s stock. TD Cowen’s price target would indicate a potential upside of 53.21% from the stock’s previous close.

Several other research analysts have also issued reports on the company. Oppenheimer raised their price target on Semtech from $200.00 to $225.00 and gave the stock an “outperform” rating in a research report on Thursday, October 1st. Seaport Research Partners began coverage on Semtech in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $200.00 price target on the stock. Wall Street Zen upgraded Semtech from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. Stifel Nicolaus reduced their price target on Semtech from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Northland Securities upgraded Semtech from a “market perform” rating to an “outperform” rating and set a $186.00 price target on the stock in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Semtech presently has a consensus rating of “Moderate Buy” and an average price target of $212.12.

Semtech Trading Down 2.7%

Shares of NASDAQ:SMTC traded down $3.88 during midday trading on Friday, hitting $140.33. The company had a trading volume of 2,455,869 shares, compared to its average volume of 2,869,210. Semtech has a 12 month low of $60.28 and a 12 month high of $201.99. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The stock has a market cap of $13.10 billion, a price-to-earnings ratio of 93.07 and a beta of 2.41. The firm has a fifty day simple moving average of $157.02 and a 200 day simple moving average of $139.23.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same period last year, the company earned $0.41 EPS. The firm’s revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, analysts predict that Semtech will post 2.64 EPS for the current year.

Insider Activity

In other Semtech news, CEO Hong Hou sold 2,000 shares of Semtech stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $138.71, for a total transaction of $277,420.00. Following the transaction, the chief executive officer directly owned 60,799 shares in the company, valued at approximately $8,433,429.29. The trade was a 3.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of Semtech stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $145.00, for a total value of $217,500.00. Following the transaction, the director owned 7,140 shares in the company, valued at approximately $1,035,300. This represents a 17.36% 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 13,737 shares of company stock valued at $2,267,877. Company insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Leonteq Securities AG lifted its stake in shares of Semtech by 11.2% in the 1st quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock valued at $90,000 after acquiring an additional 118 shares during the last quarter. Corient Private Wealth LP lifted its stake in shares of Semtech by 4.0% in the 2nd quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company’s stock valued at $515,000 after acquiring an additional 122 shares during the last quarter. ABS Investment Management LLC bought a new position in shares of Semtech in the 2nd quarter valued at $178,035,000. FNY Investment Advisers LLC increased its holdings in Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Semtech in the second quarter valued at $32,000.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its third-quarter outlook and presented a long-term growth plan extending to 2030. The company expects data-center revenue to more than double in fiscal 2028 and 2029, supported by demand for copper, fiber and optical connectivity as AI infrastructure spending expands. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades
• Positive Sentiment: Baird reaffirmed its “outperform” rating and $300 price target, citing record bookings and strong visibility over the next two years. Management’s data-center projections reinforce the view that Semtech can benefit from rising AI-related connectivity demand. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: Northland Securities upgraded Semtech from “market perform” to “outperform” with a $186 target. TD Cowen also reaffirmed its “buy” rating with a $215 target, while BMO raised its target to $230, adding to the bullish analyst support. BMO lifts target to USD 230.00 for Semtech stock
• Neutral Sentiment: Options activity was unusually strong, with traders purchasing 6,179 call contracts—about 43% above typical call volume. This suggests increased speculative interest, but it does not guarantee sustained buying in the shares.
• Negative Sentiment: Valuation remains a concern after Semtech’s roughly eightfold run. One market commentary argued that SMTC looks expensive, while Stifel lowered its price target from $220 to $200 despite maintaining a “buy” rating. Semtech Stock Looks Expensive After Its 8x Run
• Negative Sentiment: The stock initially declined sharply during the analyst day, indicating that some investors may have viewed the updated targets as insufficient relative to Semtech’s elevated valuation or were taking profits despite the improved outlook. Semtech declines 10% amid analyst day

Semtech Company Profile

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.