39,234 Shares in Semtech Corporation $SMTC Bought by Headlands Technologies LLC

Key Points

• Headlands Technologies acquired 39,234 Semtech shares worth approximately $6.35 million in the second quarter, while several other major institutions 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 the $0.61 consensus estimate. The company issued third-quarter fiscal 2027 EPS guidance of $1.02–$1.08.
• Analysts maintain a generally bullish outlook, with a “Moderate Buy” consensus and average price target of $204.71, but insiders sold 21,734 shares over the past three months and the stock’s high P/E ratio and beta indicate valuation and volatility risks.

Headlands Technologies LLC purchased a new stake in Semtech Corporation (NASDAQ:SMTC - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 39,234 shares of the semiconductor company's stock, valued at approximately $6,350,000. Semtech accounts for about 0.7% of Headlands Technologies LLC's holdings, making the stock its 26th biggest position.

A number of other hedge funds also recently made changes to their positions in the business. Andar Capital Management HK Ltd bought a new stake in Semtech in the second quarter valued at about $162,000,000. Vanguard Group Inc. raised its stake in shares of Semtech by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock valued at $873,842,000 after acquiring an additional 298,987 shares during the last quarter. BlackRock Inc. acquired a new stake in Semtech during the 2nd quarter valued at $1,577,947,000. Ameriprise Financial Inc. raised its position in Semtech by 10.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock valued at $321,040,000 after purchasing an additional 666,456 shares during the last quarter. Finally, State Street Corp boosted its stake in Semtech by 1.5% in the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock worth $182,235,000 after purchasing an additional 60,788 shares in the last quarter.

Insider Activity

In other Semtech news, CFO Mark Lin sold 970 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the completion of the sale, the chief financial officer owned 34,896 shares in the company, valued at $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the firm's 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. 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. In the last three months, insiders sold 21,734 shares of company stock valued at $3,133,986. 0.44% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on SMTC shares. Northland Securities raised shares of Semtech from a "market perform" rating to an "outperform" rating and set a $182.00 target price on the stock in a research note on Thursday. B. Riley Financial lifted their target price on shares of Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Stifel Nicolaus upped their target price 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 target on Semtech in a research note on Wednesday, May 27th. Finally, Benchmark reaffirmed a "buy" rating on shares of Semtech in a research note on Thursday, August 20th. Fifteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price 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

Semtech Price Performance

Shares of SMTC opened at $131.17 on Monday. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47. Semtech Corporation has a twelve month low of $55.18 and a twelve month high of $177.35. The company has a 50 day moving average of $135.08 and a 200-day moving average of $119.31. The stock has a market capitalization of $12.24 billion, a P/E ratio of 86.87 and a beta of 2.35.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.61 by $0.10. The firm had revenue of $341.87 million for the quarter, compared to analysts' expectations of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company's revenue for the quarter was up 32.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, equities research analysts forecast that Semtech Corporation will post 2.63 EPS for the current fiscal year.

Semtech 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.

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