Connor Clark & Lunn Investment Management Ltd. Takes Position in Semtech Corporation $SMTC

Key Points

• Connor Clark & Lunn Investment Management acquired 29,288 Semtech shares during the second quarter, valued at approximately $4.74 million. Other institutional investors also increased their positions.
• Semtech exceeded quarterly expectations with adjusted EPS of $0.71 versus $0.61 expected and revenue of $341.87 million, up 32.7% year over year. Management provided Q3 EPS guidance of $1.02–$1.08, supported by strong data-center and AI infrastructure demand.
• Insiders sold 21,734 shares worth roughly $3.13 million over the past three months, while the stock trades at a high price-to-earnings ratio near 94. Analysts nonetheless maintain a “Moderate Buy” consensus with an average price target of $204.71.

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 29,288 shares of the semiconductor company's stock, valued at approximately $4,740,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Leonteq Securities AG lifted its position in Semtech by 11.2% in the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company's stock worth $90,000 after purchasing an additional 118 shares during the period. Stephens Inc. AR increased its position in shares of Semtech by 3.3% during the 4th quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company's stock valued at $325,000 after purchasing an additional 142 shares during the period. Captrust Financial Advisors increased its position in shares of Semtech by 0.8% during the 4th quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company's stock valued at $1,422,000 after purchasing an additional 162 shares during the period. Cetera Investment Advisers raised its stake in shares of Semtech by 1.5% in the 4th quarter. Cetera Investment Advisers now owns 11,737 shares of the semiconductor company's stock worth $865,000 after buying an additional 177 shares in the last quarter. Finally, FNY Investment Advisers LLC lifted its holdings in shares of Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock valued at $32,000 after buying an additional 180 shares during the period.

Insiders Place Their Bets

In related news, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction on Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the completion of the transaction, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This trade represents a 2.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of Semtech stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $170.00, for a total value of $935,000.00. Following the completion of the transaction, the insider directly owned 80,876 shares in the company, valued at $13,748,920. This represents a 6.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,734 shares of company stock worth $3,133,986 over the last three months. Company insiders own 0.44% of the company's stock.

Semtech News Summary

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly beat and stronger outlook: Semtech reported adjusted EPS of $0.71 versus the $0.61 consensus estimate and revenue of approximately $341.9 million, ahead of expectations. Revenue grew roughly 33% year over year, while management issued Q3 EPS guidance of $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance
• Positive Sentiment: AI and data-center demand are accelerating: Data-center revenue reportedly rose 91%, supported by AI infrastructure investment. Management highlighted a ramp toward 1.6-terabit connectivity, record backlog, capacity expansion, and sustained demand for higher-speed networking products. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Portfolio shift may improve profitability: Semtech’s planned divestiture of its cellular business is intended to concentrate resources on data-center and connectivity markets, while potentially creating a structural improvement in margins. Debt reduction and stronger profitability also supported the bullish reaction. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Analysts raised their stance: Northland Securities upgraded SMTC from Market Perform to Outperform and set a $182 price target, arguing that connectivity is becoming a key bottleneck for AI infrastructure. Needham maintained a Buy rating with a $200 target, while other analysts cited targets as high as $215. Northland lifts Semtech rating, sees connectivity as the AI bottleneck
• Neutral Sentiment: Investor expectations are elevated: Increased call-option activity reflects bullish positioning, but SMTC trades at a high earnings multiple and remains exposed to execution, capacity-expansion, and semiconductor-cycle risks.

Semtech Price Performance

Shares of NASDAQ:SMTC opened at $142.43 on Friday. The company has a market capitalization of $13.27 billion, a PE ratio of 94.33 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.62 and a current ratio of 1.70. The stock has a fifty day moving average of $135.62 and a 200-day moving average of $119.01. Semtech Corporation has a one year low of $55.18 and a one year high of $177.35.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its 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. The business had revenue of $341.87 million for the quarter, compared to analysts' expectations of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The company's quarterly revenue 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 analysts anticipate that Semtech Corporation will post 1.81 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on SMTC. Benchmark reaffirmed a "buy" rating on shares of Semtech in a research note on Thursday, August 20th. Roth Capital set a $220.00 price target on shares of Semtech in a research report on Wednesday. Weiss Ratings reissued a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. Citigroup lowered shares of Semtech from a "buy" rating to a "market perform" rating in a research report on Tuesday, May 26th. Finally, Zacks Research lowered shares of Semtech from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Fifteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $204.71.

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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