Semtech (NASDAQ:SMTC) Releases Earnings Results, Beats Expectations By $0.06 EPS

Semtech (NASDAQ:SMTC) released its earnings results on Tuesday. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06, FiscalAI reports. Semtech had a negative net margin of 3.86% and a positive return on equity of 18.09%. The business had revenue of $291.00 million during the quarter, compared to analyst estimates of $283.53 million. Semtech updated its Q2 2027 guidance to 0.590-0.630 EPS.

Semtech Trading Up 4.9%

SMTC stock traded up $7.68 during mid-day trading on Tuesday, hitting $164.46. 8,450,526 shares of the company were exchanged, compared to its average volume of 2,243,860. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $15.31 billion, a P/E ratio of -373.77 and a beta of 2.22. The business has a fifty day simple moving average of $102.46 and a 200-day simple moving average of $86.90. Semtech has a 12-month low of $34.59 and a 12-month high of $168.29.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Northland Securities lowered shares of Semtech from an “outperform” rating to a “market perform” rating in a report on Tuesday. Citigroup lowered shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday. Benchmark upped their target price on shares of Semtech from $115.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, April 14th. TD Cowen reaffirmed a “buy” rating on shares of Semtech in a report on Tuesday, February 24th. Finally, Morgan Stanley upped their target price on shares of Semtech from $89.00 to $155.00 and gave the stock an “equal weight” rating in a report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average price target of $118.50.

Insider Activity at Semtech

In other Semtech news, EVP Jason Elliot Green sold 7,500 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $81.73, for a total transaction of $612,975.00. Following the completion of the transaction, the executive vice president owned 8,811 shares of the company’s stock, valued at $720,123.03. This trade represents a 45.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $90.11, for a total transaction of $180,220.00. Following the transaction, the chief executive officer directly owned 73,228 shares of the company’s stock, valued at approximately $6,598,575.08. This trade represents a 2.66% decrease in their position. 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 have sold a total of 36,884 shares of company stock valued at $3,069,245 over the last quarter. 0.48% of the stock is owned by insiders.

Institutional Trading of Semtech

Several hedge funds have recently made changes to their positions in the business. Ameriprise Financial Inc. lifted its position in shares of Semtech by 10.3% during the second 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 in the last quarter. State Street Corp lifted its position in shares of Semtech by 1.5% during the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock worth $182,235,000 after purchasing an additional 60,788 shares in the last quarter. Whale Rock Capital Management LLC lifted its position in shares of Semtech by 11.3% during the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock worth $287,499,000 after purchasing an additional 396,504 shares in the last quarter. Alliancebernstein L.P. lifted its position in shares of Semtech by 9.8% during the second quarter. Alliancebernstein L.P. now owns 3,318,384 shares of the semiconductor company’s stock worth $149,792,000 after purchasing an additional 294,990 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN lifted its position in shares of Semtech by 4.2% during the second quarter. Disciplined Growth Investors Inc. MN now owns 2,894,536 shares of the semiconductor company’s stock worth $130,659,000 after purchasing an additional 115,921 shares in 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.