Andar Capital Management HK Ltd Increases Stake in Semtech Corporation $SMTC

Key Points

• Andar Capital Management HK Ltd nearly doubled its Semtech position in Q4, increasing its stake by 89.5% to 189,525 shares. The holding now makes Semtech its second-largest portfolio position.
• Semtech delivered a strong earnings beat, reporting Q1 EPS of $0.51 versus $0.45 expected and revenue of $291 million versus $283.53 million estimated. Revenue rose 15.9% year over year, helped by demand in data center and infrastructure markets.
• Investor sentiment improved further after the company issued Q2 revenue guidance above expectations and several analysts raised price targets, with some moving targets as high as $225. Shares were trading up sharply, and the stock recently hit a 52-week high near $172.35.

Andar Capital Management HK Ltd raised its stake in Semtech Corporation (NASDAQ:SMTC - Free Report) by 89.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 189,525 shares of the semiconductor company's stock after buying an additional 89,525 shares during the quarter. Semtech comprises approximately 15.1% of Andar Capital Management HK Ltd's investment portfolio, making the stock its 2nd biggest holding. Andar Capital Management HK Ltd owned 0.20% of Semtech worth $13,966,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings 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 purchasing an additional 298,987 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Semtech by 3.7% in the third quarter. Ameriprise Financial Inc. now owns 7,373,744 shares of the semiconductor company's stock valued at $526,861,000 after purchasing an additional 261,647 shares during the last quarter. Capital Research Global Investors increased its holdings in Semtech by 13.9% during the third quarter. Capital Research Global Investors now owns 4,691,676 shares of the semiconductor company's stock worth $335,220,000 after buying an additional 571,372 shares during the last quarter. State Street Corp increased its holdings in Semtech by 1.5% during the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock worth $182,235,000 after buying an additional 60,788 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Semtech by 8.7% during the third quarter. Alliancebernstein L.P. now owns 3,607,697 shares of the semiconductor company's stock worth $257,770,000 after buying an additional 289,313 shares during the last quarter.

Key Stories Impacting Semtech

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

Insider Buying and Selling at Semtech

In related news, Director Paul V. Walsh, Jr. sold 500 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total transaction of $69,105.00. Following the completion of the sale, the director owned 23,279 shares of the company's stock, valued at $3,217,390.59. This represents a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Martin Burvill sold 2,500 shares of the company's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $88.98, for a total transaction of $222,450.00. Following the sale, the director directly owned 4,409 shares of the company's stock, valued at $392,312.82. This represents a 36.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 36,884 shares of company stock valued at $3,069,245 over the last three months. 0.48% of the stock is owned by insiders.

Semtech Trading Up 5.8%

Shares of Semtech stock opened at $166.33 on Friday. The firm has a 50-day moving average of $107.16 and a 200-day moving average of $88.86. The stock has a market cap of $15.49 billion, a PE ratio of -426.49 and a beta of 2.22. Semtech Corporation has a 52-week low of $34.59 and a 52-week high of $172.35. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.66 and a current ratio of 2.37.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.06. The company had revenue of $291.00 million during the quarter, compared to analysts' expectations of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. Semtech's quarterly revenue was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, sell-side analysts forecast that Semtech Corporation will post 1.6 EPS for the current year.

Analysts Set New Price Targets

SMTC has been the topic of a number of recent analyst reports. Morgan Stanley boosted their target price on shares of Semtech from $155.00 to $175.00 and gave the stock an "equal weight" rating in a report on Wednesday. Benchmark boosted their target price on shares of Semtech from $120.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday. Weiss Ratings downgraded shares of Semtech from a "hold (c-)" rating to a "sell (d-)" rating in a report on Tuesday, March 24th. Stifel Nicolaus boosted their target price on shares of Semtech from $157.00 to $188.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Susquehanna upped their price objective on shares of Semtech from $170.00 to $200.00 and gave the company a "positive" rating in a report on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $179.73.

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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