Semtech Corporation (NASDAQ:SMTC) Receives Average Rating of “Moderate Buy” from Brokerages

Semtech Corporation (NASDAQ:SMTC) has been assigned an average rating of “Moderate Buy” from the nineteen analysts that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and fifteen have given a buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $204.7059.

A number of research analysts recently weighed in on the stock. Roth Capital set a $220.00 target price on shares of Semtech in a report on Wednesday, August 26th. Citigroup downgraded shares of Semtech from a “buy” rating to a “market perform” rating in a research note on Tuesday, May 26th. New Street Research set a $230.00 price objective on shares of Semtech in a research report on Thursday, August 20th. Benchmark reissued a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. Finally, BMO Capital Markets initiated coverage on shares of Semtech in a report on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 target price on the stock.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported quarterly EPS of $0.71, ahead of the $0.61 consensus estimate, while revenue of $341.87 million exceeded expectations of $328.67 million. Revenue increased 32.7% year over year, and the company provided EPS guidance of $1.02 to $1.08 for the next quarter. These results reinforce the market’s view that growth is accelerating. Semtech rallies 10% after earnings and guidance beat
• Positive Sentiment: The company introduced a 224G linear transimpedance amplifier and driver portfolio for near-packaged optics and co-packaged optics. The products target AI and machine-learning clusters, hyperscale data centers and next-generation optical connectivity, providing exposure to expanding data-center bandwidth demand. Semtech Sets Bar for 224G Optical Connectivity
• Positive Sentiment: Semtech also announced an industry-first 10G PON chipset for 50G optical line-terminal modules. The chipset is designed to support multiple generations of PON technology, potentially helping network-equipment customers transition to higher-speed broadband deployments. Semtech Delivers 10G PON Chipset
• Neutral Sentiment: CEO Hong Hou sold 2,000 shares and director Julie Garcia Ruehl sold 1,500 shares. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as a bearish signal, although they still represent near-term insider selling.
• Negative Sentiment: Semtech’s sharp advance has left the stock trading at a high valuation, with a price-to-earnings ratio above 100. One valuation analysis estimated fair value substantially below the market price, raising downside risk if growth or guidance weakens. Semtech valuation analysis

Semtech Price Performance

NASDAQ:SMTC opened at $163.94 on Friday. 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 company has a market capitalization of $15.30 billion, a P/E ratio of 108.57 and a beta of 2.35. Semtech has a 12 month low of $57.50 and a 12 month high of $177.35. The business’s 50-day moving average is $132.74 and its 200 day moving average is $122.55.

Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating 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 during the quarter, compared to analysts’ expectations of $328.67 million. During the same quarter last year, the business posted $0.41 EPS. The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities research analysts forecast that Semtech will post 2.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Semtech news, COO Asaf Silberstein sold 8,500 shares of the business’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 transaction of $1,086,300.00. Following the sale, the chief operating officer directly owned 96,862 shares of the company’s stock, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Hou sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the completion of the sale, the chief executive officer directly owned 64,799 shares of the company’s stock, valued at $8,618,267. The trade was a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 23,234 shares of company stock valued at $3,304,706 in the last quarter. 0.44% of the stock is currently owned by insiders.

Institutional Trading of Semtech

A number of institutional investors have recently bought and sold shares of SMTC. Andar Capital Management HK Ltd bought a new position in Semtech during the second quarter valued at $162,000,000. California State Teachers Retirement System lifted its holdings in shares of Semtech by 16,868.8% in the 2nd quarter. California State Teachers Retirement System now owns 17,446,944 shares of the semiconductor company’s stock worth $2,823,788,000 after acquiring an additional 17,344,126 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Semtech during the 2nd quarter worth about $1,577,947,000. Ameriprise Financial Inc. boosted its stake in shares of Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after purchasing an additional 666,456 shares during the period. Finally, State Street Corp grew its holdings in Semtech by 1.5% during the 2nd quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock valued at $182,235,000 after purchasing an additional 60,788 shares during the last quarter.

Semtech Company Profile

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.