Legal & General Group Plc Invests $20.69 Million in Semtech Corporation $SMTC

Key Points

• Legal & General acquired 127,837 Semtech shares worth approximately $20.69 million in the second quarter, joining several other institutional investors that initiated positions.
• Semtech reported strong quarterly results, with revenue rising 32.7% year over year to $341.87 million and EPS of $0.71 beating the $0.61 consensus estimate. Management 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, although the stock’s high valuation, volatility and recent insider selling present risks.

Legal & General Group Plc acquired a new position 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 & Exchange Commission. The fund acquired 127,837 shares of the semiconductor company's stock, valued at approximately $20,690,000. Legal & General Group Plc owned about 0.14% of Semtech as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of SMTC. The Manufacturers Life Insurance Company bought a new position in Semtech during the 2nd quarter worth $11,423,000. Tairen Capital Ltd bought a new stake in shares of Semtech in the 2nd quarter valued at about $6,005,000. Anther Capital Ltd acquired a new stake in shares of Semtech in the second quarter valued at about $332,000. Infrastructure Capital Advisors LLC bought a new position in shares of Semtech during the second quarter worth about $639,000. Finally, Maxi Investments CY Ltd acquired a new position in shares of Semtech in the second quarter worth approximately $1,473,000.

Semtech Trading Down 7.9%

SMTC opened at $131.17 on Friday. The company has a fifty day moving average price of $135.08 and a two-hundred day moving average price of $119.10. Semtech Corporation has a 1-year low of $55.18 and a 1-year high of $177.35. The company has a market cap of $12.24 billion, a P/E ratio of 86.87 and a beta of 2.35. The company has a current ratio of 1.70, a quick ratio of 1.62 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings data 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 net margin of 13.11% and a return on equity of 21.74%. The company had revenue of $341.87 million for the quarter, compared to analysts' expectations of $328.67 million. During the same quarter in the prior year, the firm earned $0.41 EPS. 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. Analysts predict that Semtech Corporation will post 2.63 EPS for the current fiscal year.

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

Analysts Set New Price Targets

SMTC has been the subject of a number of recent analyst reports. TD Cowen increased their target price on shares of Semtech from $210.00 to $215.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. Mizuho set a $225.00 price objective on shares of Semtech in a research note on Wednesday, May 27th. Zacks Research cut shares of Semtech from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Oppenheimer set a $200.00 target price on shares of Semtech in a research note on Wednesday, May 27th. Finally, Morgan Stanley boosted their target price on shares of Semtech from $175.00 to $195.00 and gave the company an "equal weight" rating in a report on Wednesday. Fifteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Semtech has an average rating of "Moderate Buy" and a consensus target price of $204.71.

Insider Transactions at Semtech

In other Semtech news, COO Asaf Silberstein sold 8,500 shares of the firm's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value 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 approximately $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the company's stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% 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 ninety days, insiders have sold 21,734 shares of company stock valued at $3,133,986. Company insiders own 0.44% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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