Equities Analysts Offer Predictions for Semtech Q3 Earnings

Key Points

• Northland Securities raised its Q3 2027 EPS forecast for Semtech to $0.93 from $0.85, maintaining an “Outperform” rating and $186 price target.
• Semtech’s latest quarter exceeded expectations, with EPS of $0.71 versus the $0.61 consensus and revenue of $341.87 million versus $328.67 million; revenue rose 32.7% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and $213.11 average price target, although valuation concerns persist after the stock’s sharp rally and recent insider selling.

Semtech Corporation (NASDAQ:SMTC - Free Report) - Northland Securities increased their Q3 2027 earnings per share estimates for Semtech in a research report issued to clients and investors on Friday, October 16th. Northland Securities analyst G. Richard now anticipates that the semiconductor company will post earnings of $0.93 per share for the quarter, up from their previous estimate of $0.85. Northland Securities has an "Outperform" rating and a $186.00 price objective on the stock. The consensus estimate for Semtech's current full-year earnings is $2.75 per share. Northland Securities also issued estimates for Semtech's Q4 2027 earnings at $1.01 EPS, FY2027 earnings at $2.73 EPS, Q1 2028 earnings at $1.07 EPS, Q2 2028 earnings at $1.21 EPS and FY2028 earnings at $4.88 EPS.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10. The firm had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The business's revenue was up 32.7% compared to the same quarter last year. During the same period last year, the firm posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS.

SMTC has been the subject of several other research reports. Needham & Company LLC restated a "buy" rating and set a $200.00 price target on shares of Semtech in a research report on Wednesday, August 26th. Wall Street Zen raised shares of Semtech from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. BMO Capital Markets lifted their price objective on shares of Semtech from $155.00 to $230.00 and gave the stock an "outperform" rating in a research report on Tuesday, October 13th. Zacks Research upgraded shares of Semtech from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Finally, Seaport Research Partners initiated coverage on shares of Semtech in a research report on Tuesday, September 22nd. They set a "buy" rating and a $200.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Semtech currently has a consensus rating of "Moderate Buy" and a consensus price target of $213.11.

Semtech Price Performance

Shares of NASDAQ:SMTC opened at $136.73 on Monday. The company's 50-day moving average is $156.97 and its 200 day moving average is $139.69. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70. The company has a market capitalization of $12.76 billion, a P/E ratio of 90.55 and a beta of 2.41. Semtech has a fifty-two week low of $60.28 and a fifty-two week high of $201.99.

Institutional Investors Weigh In On Semtech

Several institutional investors have recently made changes to their positions in the stock. Andar Capital Management HK Ltd bought a new stake in shares of Semtech during the 2nd quarter valued at $162,000,000. BlackRock Inc. purchased a new stake in Semtech during the 2nd quarter worth about $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Semtech by 396.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company's stock worth $136,298,000 after purchasing an additional 672,447 shares during the period. Assenagon Asset Management S.A. boosted its stake in Semtech by 323.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company's stock worth $60,051,000 after purchasing an additional 596,373 shares during the period. Finally, Jennison Associates LLC boosted its stake in Semtech by 15.6% in the 1st quarter. Jennison Associates LLC now owns 744,380 shares of the semiconductor company's stock worth $57,235,000 after purchasing an additional 100,552 shares during the period.

Insider Activity at Semtech

In other news, CFO Mark Lin sold 967 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total transaction of $172,967.29. Following the completion of the transaction, the chief financial officer owned 35,999 shares in the company, valued at approximately $6,439,141.13. This represents a 2.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,766 shares of Semtech stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $190.35, for a total value of $526,508.10. Following the completion of the sale, the executive vice president directly owned 7,367 shares of the company's stock, valued at approximately $1,402,308.45. This trade represents a 27.30% 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 13,737 shares of company stock worth $2,267,877 in the last three months. Corporate insiders own 0.44% of the company's stock.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its near-term Q3 guidance and presented a longer-term outlook through 2030, helping support a recovery in the stock. Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades
• Positive Sentiment: The company expects data-center revenue to more than double in fiscal 2028 and 2029. Baird reaffirmed its “outperform” rating and $300 target, citing record bookings and strong two-year visibility from demand for copper, fiber and optical connectivity used in AI infrastructure. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: TD Cowen maintained a “buy” rating with a $215 price target, while BMO raised its target to $230. These targets indicate analysts see substantial upside if Semtech delivers on its data-center growth plans.
• Positive Sentiment: Investors purchased approximately 6,179 SMTC call options, about 43% above average daily volume, signaling increased speculative interest in a rebound.
• Neutral Sentiment: Stifel lowered its price target from $220 to $200 but retained a “buy” rating, suggesting valuation or execution concerns while preserving a positive long-term view. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets
• Negative Sentiment: Despite the improved outlook, some investors viewed SMTC as expensive after its roughly eightfold run over the past year. That valuation concern likely contributed to selling pressure around analyst day and could limit further gains unless earnings growth accelerates. Semtech Stock Looks Expensive After Its 8x Run

Semtech Company Profile

Semtech Corporation NASDAQ: SMTC is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company's products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.

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