Freestone Grove Partners LP Invests $14 Million in Semtech Corporation $SMTC

Key Points

• Freestone Grove Partners LP acquired a new $14 million stake in Semtech, buying 86,512 shares for approximately 0.09% ownership. Several other institutional investors also initiated or expanded positions.
• Semtech reported a strong quarter, with adjusted EPS of $0.71 versus the $0.61 consensus and revenue of $341.9 million, up 32.7% year over year. Management issued Q3 EPS guidance of $1.02–$1.08, supported by accelerating data-center and AI infrastructure demand.
• Analysts have a “Moderate Buy” consensus and an average price target of $204.71, but the stock’s high P/E ratio of 94.33 and exposure to execution, capacity-expansion, and semiconductor-cycle risks leave expectations elevated.

Freestone Grove Partners LP acquired a new position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 86,512 shares of the semiconductor company's stock, valued at approximately $14,002,000. Freestone Grove Partners LP owned about 0.09% of Semtech as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Andar Capital Management HK Ltd acquired a new stake in shares of Semtech during the 2nd quarter worth about $162,000,000. BlackRock Inc. acquired a new stake in shares of Semtech during the second quarter worth approximately $1,577,947,000. Think Investments LP acquired a new stake in shares of Semtech during the third quarter worth approximately $58,618,000. Ameriprise Financial Inc. raised its stake in shares of Semtech by 10.3% in the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock valued at $321,040,000 after acquiring an additional 666,456 shares during the last quarter. Finally, Atreides Management LP bought a new position in shares of Semtech in the second quarter valued at approximately $29,880,000.

More Semtech News

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 Stock Performance

SMTC stock opened at $142.43 on Friday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.62. The company has a 50 day moving average price of $135.62 and a 200 day moving average price of $119.01. Semtech Corporation has a fifty-two week low of $55.18 and a fifty-two week high of $177.35. The stock has a market capitalization of $13.27 billion, a PE ratio of 94.33 and a beta of 2.35.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.10. The firm had revenue of $341.87 million for 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 quarterly revenue was up 32.7% compared to the same quarter last year. During the same period last year, the company earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts forecast that Semtech Corporation will post 1.81 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. New Street Research set a $230.00 price target on Semtech in a research report on Thursday, August 20th. Roth Capital set a $220.00 price objective on Semtech in a research report on Wednesday. B. Riley Financial boosted their price objective on Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Weiss Ratings restated a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. Finally, Zacks Research lowered Semtech from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st. Fifteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $204.71.

Insiders Place Their Bets

In related news, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the completion of the sale, the executive vice president directly owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total transaction of $145,897.70. Following the transaction, the chief financial officer owned 34,896 shares in the company, valued at approximately $5,248,707.36. The trade was a 2.70% 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. Insiders have sold 21,734 shares of company stock valued at $3,133,986 over the last 90 days. Corporate insiders own 0.44% of the company's stock.

Semtech Company 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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