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

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

The semiconductor company reported $0.51 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. The firm had revenue of $291.00 million during the quarter, compared to the consensus estimate of $283.53 million. Semtech had a positive return on equity of 18.45% and a negative net margin of 3.05%.The firm’s revenue was up 15.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.38 EPS. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS.

Key Semtech News

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

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SMTC. Needham & Company LLC boosted their price target on Semtech from $105.00 to $200.00 and gave the stock a “buy” rating in a research report on Wednesday. Mizuho set a $225.00 price objective on shares of Semtech in a research note on Wednesday. Roth Mkm upped their price objective on shares of Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday. Morgan Stanley increased their target price on shares of Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a research report on Wednesday. Finally, UBS Group increased their target price on shares of Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research report on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $179.73.

Insider Buying and Selling at Semtech

In related news, CFO Mark Lin sold 974 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $78.42, for a total value of $76,381.08. Following the completion of the transaction, the chief financial officer owned 33,343 shares in the company, valued at $2,614,758.06. This trade represents a 2.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul V. Walsh, Jr. sold 500 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total transaction of $69,105.00. Following the sale, the director directly owned 23,279 shares in the company, valued at approximately $3,217,390.59. This trade represents a 2.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 36,884 shares of company stock valued at $3,069,245. Corporate insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Banque Cantonale Vaudoise acquired a new position in Semtech in the 1st quarter valued at approximately $33,000. Hantz Financial Services Inc. boosted its holdings in Semtech by 243.2% in the third quarter. Hantz Financial Services Inc. now owns 508 shares of the semiconductor company’s stock worth $36,000 after purchasing an additional 360 shares in the last quarter. AlphaQuest LLC increased its position in Semtech by 42.5% during the third quarter. AlphaQuest LLC now owns 580 shares of the semiconductor company’s stock worth $41,000 after buying an additional 173 shares during the last quarter. Jones Financial Companies Lllp raised its stake in shares of Semtech by 65.5% in the 3rd quarter. Jones Financial Companies Lllp now owns 594 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 235 shares in the last quarter. Finally, Assetmark Inc. lifted its holdings in Semtech by 1,745.5% in the 3rd quarter. Assetmark Inc. now owns 609 shares of the semiconductor company’s stock worth $44,000 after purchasing an additional 576 shares during the last quarter.

Semtech Trading Up 5.8%

The company has a fifty day moving average of $105.41 and a two-hundred day moving average of $88.19. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $15.49 billion, a price-to-earnings ratio of -426.49 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.