Palisade Capital Management LP Takes $19.09 Million Position in Semtech Corporation $SMTC

Palisade Capital Management LP bought a new stake in shares of Semtech Corporation (NASDAQ:SMTC) during the 2nd quarter, Holdings Channel reports. The firm bought 117,972 shares of the semiconductor company’s stock, valued at approximately $19,094,000. Semtech comprises 0.8% of Palisade Capital Management LP’s investment portfolio, making the stock its 23rd biggest holding.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Andar Capital Management HK Ltd bought a new position in shares of Semtech in the 2nd quarter worth $162,000,000. BlackRock Inc. bought a new position in shares of Semtech during the 2nd quarter worth approximately $1,577,947,000. Think Investments LP bought a new position in shares of Semtech in the 3rd quarter valued at about $58,618,000. Ameriprise Financial Inc. increased its position 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 last quarter. Finally, Atreides Management LP bought a new stake in Semtech during the second quarter worth $29,880,000.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Zacks Research cut Semtech from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Mizuho set a $225.00 price objective on shares of Semtech in a research report on Wednesday, May 27th. Benchmark reiterated a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. Morgan Stanley lifted their target price on shares of Semtech from $155.00 to $175.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 27th. Finally, Robert W. Baird raised their price objective on Semtech from $110.00 to $225.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 27th. Fourteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $198.00.

Semtech Trading Up 5.5%

NASDAQ:SMTC opened at $127.52 on Wednesday. Semtech Corporation has a 12 month low of $53.62 and a 12 month high of $177.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The firm’s 50 day moving average is $136.12 and its 200 day moving average is $118.21. The stock has a market capitalization of $11.88 billion, a PE ratio of -326.97 and a beta of 2.35.

Semtech (NASDAQ:SMTC) last issued its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The business had revenue of $341.90 million for the quarter, compared to analysts’ expectations of $328.67 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The business’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Sell-side analysts expect that Semtech Corporation will post 1.81 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Hong Q. Hou sold 2,000 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total value of $145,897.70. Following the transaction, the chief financial officer owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. The trade was a 2.70% 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 ninety days, insiders sold 21,734 shares of company stock worth $3,133,986. Company insiders own 0.44% of the company’s stock.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly results topped expectations. Semtech reported adjusted earnings of $0.71 per share, above the $0.61–$0.62 analyst consensus and up from $0.41 a year earlier. Revenue reached a record $341.9 million, 33% above the prior-year period and ahead of expectations. Semtech Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Fiscal Q3 guidance was far above consensus. Semtech forecast revenue of approximately $410 million, or $405 million to $415 million, versus the $359.3 million analyst estimate. Adjusted diluted EPS guidance of about $1.05, with a range of $1.02 to $1.08, also exceeded the roughly $0.69 consensus. Semtech Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Profitability and cash generation improved. Gross margin was 53.8%, operating margin was 16.3%, operating cash flow was $68.9 million, and free cash flow was $61.4 million. Commentary highlighting AI-related demand, improving inventory levels, and continued growth expectations supported the bullish reaction. Semtech Posts Record Fiscal Q2 Sales
• Neutral Sentiment: Semtech is also hosting a LoRa ecosystem forum at the IOTE 2026 exhibition, which could provide additional updates on IoT adoption and product demand but is not yet a financial catalyst. Semtech Hosts LoRa Ecosystem Forum
• Negative Sentiment: Recent filings cited by market commentary show substantial insider selling and several institutional position reductions. These transactions may temper sentiment, although they are less significant than the earnings and guidance beat.

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.