13,894 Shares in Semtech Corporation $SMTC Purchased by Two Sigma Securities LLC

Key Points

• Two Sigma Securities purchased 13,894 Semtech shares worth approximately $2.25 million in the second quarter, while several other institutional investors also increased or initiated positions.
• Semtech reported strong quarterly results, with revenue rising 32.7% year over year to $341.87 million and EPS of $0.71 exceeding estimates of $0.61. The company issued third-quarter fiscal 2027 EPS guidance of $1.02–$1.08, supported by AI data-center demand.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and a $204.71 price target, although some firms downgraded the stock. Risks include its high valuation, elevated volatility, and recent insider share sales.

Two Sigma Securities LLC purchased a new stake in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 13,894 shares of the semiconductor company's stock, valued at approximately $2,249,000.

A number of other large investors also recently bought and sold shares of the stock. Jones Financial Companies Lllp boosted its position in Semtech by 12,214.3% in the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after purchasing an additional 2,565 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of Semtech by 11.5% during the 1st quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after purchasing an additional 968 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Semtech by 5.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after purchasing an additional 22,629 shares in the last quarter. Strs Ohio acquired a new position in shares of Semtech in the 1st quarter valued at $65,000. Finally, Cetera Investment Advisers acquired a new position in shares of Semtech in the 2nd quarter valued at $226,000.

Analyst Upgrades and Downgrades

Several research firms recently commented on SMTC. Stifel Nicolaus raised their price target on shares of Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Mizuho set a $225.00 price objective on shares of Semtech in a research report on Wednesday, May 27th. Benchmark reissued a "buy" rating on shares of Semtech in a research note on Thursday, August 20th. Zacks Research cut Semtech from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Finally, Citigroup lowered Semtech from a "buy" rating to a "market perform" rating in a research note on Tuesday, May 26th. Fifteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $204.71.

Semtech News Summary

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

Insider Activity at Semtech

In other news, CEO Hong Q. Hou sold 2,000 shares of the company'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 sale, the chief executive officer owned 64,799 shares of the company's stock, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the sale, the chief operating officer owned 96,862 shares of the company's stock, valued at $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,734 shares of company stock worth $3,133,986 over the last 90 days. Corporate insiders own 0.44% of the company's stock.

Semtech Price Performance

Shares of Semtech stock opened at $131.17 on Monday. The stock has a market capitalization of $12.24 billion, a P/E ratio of 86.87 and a beta of 2.35. The business has a 50 day simple moving average of $135.08 and a two-hundred day simple moving average of $119.31. Semtech Corporation has a 12 month low of $55.18 and a 12 month high of $177.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.31.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The firm had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same period in the previous year, the company posted $0.41 earnings per share. The business'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. As a group, analysts predict that Semtech Corporation will post 2.63 EPS for the current fiscal year.

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.

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