Semtech (NASDAQ:SMTC) Hits New 52-Week High on Better-Than-Expected Earnings

Semtech Corporation (NASDAQ:SMTC) shares reached a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $166.77 and last traded at $164.50, with a volume of 3058724 shares. The stock had previously closed at $156.78.

The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The firm had revenue of $291.00 million during the quarter, compared to analysts’ expectations of $283.53 million. During the same period in the prior year, the company earned $0.38 earnings per share. The company’s quarterly revenue was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech posted better-than-expected Q1 results, with EPS of $0.51 topping estimates of $0.45 and revenue of $291 million beating expectations, driven by strong demand in data center and infrastructure markets. Semtech’s Explosive Rally May Only Be Getting Started
• Positive Sentiment: The company issued Q2 revenue guidance above expectations and signaled continued momentum, especially in data center growth, which investors see as a major driver of future upside. Semtech forecasts $328M Q2 revenue as it targets 35 percent sequential data center growth
• Positive Sentiment: Several analysts raised price targets after the earnings beat, including B. Riley to $210, Needham to $200, and UBS/Baird to $225, reinforcing confidence in Semtech’s growth outlook. Semtech Stock Gains After Q1 Results Beat Estimates, Analysts Raise Price Targets
• Positive Sentiment: Analysts highlighted accelerating demand in data center and optical products, plus design wins and backlog that could support faster growth ahead. SMTC Q1 Earnings Call Flags Faster Data Center Growth
• Neutral Sentiment: Short interest data showed no meaningful positioning change, so it does not appear to be a major driver of the stock’s move. Semtech’s Explosive Rally May Only Be Getting Started

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on SMTC shares. Mizuho set a $225.00 price target on Semtech in a research note on Wednesday. Weiss Ratings cut Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Tuesday, March 24th. Benchmark increased their price target on Semtech from $120.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday. TD Cowen reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, February 24th. Finally, Citigroup cut Semtech from a “buy” rating to a “market perform” rating in a research note on Tuesday. Thirteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $179.73.

Insiders Place Their Bets

In related news, EVP Jason Elliot Green sold 7,500 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $81.73, for a total value of $612,975.00. Following the completion of the sale, the executive vice president directly owned 8,811 shares in the company, valued at $720,123.03. This represents a 45.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Paul V. Walsh, Jr. sold 500 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total value of $69,105.00. Following the completion of the sale, the director owned 23,279 shares of the company’s stock, valued at $3,217,390.59. The trade was a 2.10% 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. Insiders sold a total of 36,884 shares of company stock valued at $3,069,245 over the last ninety days. 0.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Semtech

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Jones Financial Companies Lllp grew its holdings in Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock worth $89,000 after acquiring an additional 2,565 shares during the period. Empowered Funds LLC grew its holdings in Semtech by 11.5% during the 1st quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock worth $323,000 after acquiring an additional 968 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Semtech by 5.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock worth $14,166,000 after acquiring an additional 22,629 shares during the period. Strs Ohio acquired a new stake in Semtech during the 1st quarter worth about $65,000. Finally, Cetera Investment Advisers acquired a new stake in Semtech during the 2nd quarter worth about $226,000.

Semtech Stock Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.66 and a current ratio of 2.37. The stock has a fifty day simple moving average of $105.41 and a two-hundred day simple moving average of $88.19. The stock has a market capitalization of $15.49 billion, a price-to-earnings ratio of 142.91 and a beta of 2.22.

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.