Semtech (NASDAQ:SMTC) Upgraded by Wall Street Zen to Strong-Buy Rating

Wall Street Zen upgraded shares of Semtech (NASDAQ:SMTC) from a buy rating to a strong-buy rating in a research report sent to investors on Saturday morning.

Several other research analysts have also recently issued reports on the stock. BMO Capital Markets assumed coverage on shares of Semtech in a report on Wednesday. They issued an “outperform” rating and a $155.00 target price for the company. Craig Hallum lifted their price target on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Roth Capital set a $220.00 price target on shares of Semtech in a research report on Wednesday. Stifel Nicolaus raised their price objective on Semtech from $157.00 to $188.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Finally, New Street Research set a $230.00 target price on Semtech in a research report on Thursday, August 20th. Fifteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $204.71.

Semtech Price Performance

SMTC stock opened at $131.17 on Friday. The business has a 50 day moving average price of $135.08 and a 200 day moving average price of $119.10. The company has a quick ratio of 1.62, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. The stock has a market cap of $12.24 billion, a price-to-earnings ratio of 86.87 and a beta of 2.35. Semtech has a fifty-two week low of $55.18 and a fifty-two week high of $177.35.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 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 21.74%. The company had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same period in the prior year, the firm posted $0.41 earnings per share. 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. Equities research analysts anticipate that Semtech will post 2.63 earnings per share for the current fiscal year.

Insider Transactions at Semtech

In other Semtech news, CFO Mark Lin sold 970 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total transaction of $145,897.70. Following the transaction, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. This trade represents a 2.70% 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 Semtech 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 completion of the transaction, the executive vice president owned 8,611 shares in the company, valued at approximately $1,118,568.90. This 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. Insiders have sold 21,734 shares of company stock worth $3,133,986 over the last 90 days. Company insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Semtech

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Andar Capital Management HK Ltd purchased a new stake in Semtech during the 2nd quarter valued at approximately $162,000,000. California State Teachers Retirement System grew its stake 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 valued at $2,823,788,000 after purchasing an additional 17,344,126 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Semtech by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company’s stock valued at $873,842,000 after purchasing an additional 298,987 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Semtech in the second quarter valued at approximately $1,577,947,000. Finally, Ameriprise Financial Inc. raised its stake 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 during the last quarter.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Strong quarterly results: Semtech reported record sales of approximately $341.9 million, up about 33% year over year, while adjusted earnings of $0.71 per share exceeded the $0.61 consensus estimate. Net income reportedly expanded 89%. Why Semtech Stock Was Flying This Week
• Positive Sentiment: AI data-center momentum: Reports highlight roughly $100 million in AI data-center demand and identify connectivity as a potential bottleneck for AI infrastructure. This supports expectations for continued growth in Semtech’s analog and signal-integrity businesses. Analog Bets Pay Off: Semtech Shatters Records as AI Data Center Demand Hits $100M
• Positive Sentiment: Raised outlook and improving balance sheet: Coverage cites higher guidance, expanding margins, debt reduction, and expectations for stronger near-term growth. The company’s reported third-quarter fiscal 2027 EPS outlook is $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance
• Positive Sentiment: Analyst support: Northland Securities upgraded Semtech to Outperform with a $182 price target, while Needham reaffirmed its Buy rating. Other coverage points to a consensus target near $200, reinforcing the bullish narrative. Northland lifts Semtech rating
• Neutral Sentiment: New product opportunity: The LoRa Plus transceiver lineup could strengthen Semtech’s position in long-range IoT connectivity, although the financial contribution and adoption pace remain uncertain. What Does Semtech Gain From Its New LoRa Plus Transceivers?
• Negative Sentiment: Valuation and volatility risks: Semtech trades at a high earnings multiple, and its elevated beta makes the stock sensitive to profit-taking after a sharp advance. Unusually high trading volume indicates that investors are actively reassessing the shares following earnings. Semtech Sees Unusually-High Trading Volume After Strong Earnings

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.