Northwestern Mutual Wealth Management Co. Purchases 191,743 Shares of Semtech Corporation $SMTC

Key Points

• Northwestern Mutual significantly increased its Semtech stake by purchasing 191,743 shares, bringing its holdings to 193,626 shares valued at approximately $31.3 million. Other major institutions, including BlackRock and Ameriprise Financial, also increased or initiated positions.
• Semtech exceeded quarterly expectations, reporting $0.71 EPS and $341.87 million in revenue, with revenue up 32.7% year over year. Analysts remain bullish, assigning a consensus “Moderate Buy” rating and an average price target of $204.71.
• The stock trades at a demanding valuation, with a price-to-earnings ratio of about 87.6 and elevated volatility indicated by a 2.35 beta. Company insiders sold 21,734 shares worth approximately $3.1 million over the past three months.

Northwestern Mutual Wealth Management Co. raised its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 10,182.8% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 193,626 shares of the semiconductor company's stock after acquiring an additional 191,743 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.21% of Semtech worth $31,338,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of SMTC. Andar Capital Management HK Ltd purchased a new position in shares of Semtech in the second quarter valued at $162,000,000. BlackRock Inc. purchased a new stake in Semtech during the second quarter valued at $1,577,947,000. Ameriprise Financial Inc. lifted its position in Semtech by 10.3% during the second 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. State Street Corp lifted its position in Semtech by 1.5% during the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock valued at $182,235,000 after purchasing an additional 60,788 shares during the last quarter. Finally, Whale Rock Capital Management LLC grew its stake in shares of Semtech by 11.3% in the 4th quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company's stock worth $287,499,000 after buying an additional 396,504 shares in the last quarter.

Insider Activity

In other news, 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 value of $145,897.70. Following the transaction, the chief financial officer directly owned 34,896 shares in the company, valued at approximately $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. This represents a 2.99% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders own 0.44% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on SMTC. Needham & Company LLC restated a "buy" rating and issued a $200.00 target price on shares of Semtech in a report on Wednesday, August 26th. Mizuho set a $225.00 price target on Semtech in a research report on Wednesday, May 27th. BMO Capital Markets assumed coverage on Semtech in a research note on Wednesday, August 26th. They set an "outperform" rating and a $155.00 price objective on the stock. New Street Research set a $230.00 price objective on Semtech in a research report on Thursday, August 20th. Finally, Robert W. Baird raised their price objective on Semtech from $225.00 to $300.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Fifteen 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 company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $204.71.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Northland Securities sharply raised its long-term forecasts. The firm lifted its FY2027 EPS estimate to $2.65 from $1.76 and its FY2028 estimate to $4.78 from $2.78. Quarterly estimates were also increased, including Q3 2027 to $0.85 from $0.51 and Q4 2028 to $1.30 from $0.80. Northland maintained an “Outperform” rating and a $182 price target, signaling substantial potential upside from recent trading levels. Northland Securities analyst estimates
• Positive Sentiment: Semtech is being highlighted as an AI and analog/mixed-signal growth stock. Zacks included SMTC among five AI-powered momentum stocks for September and said the company benefits from strong momentum and robust growth prospects. Another Zacks report identified Semtech as a beneficiary of AI-related demand and a recovery in automotive and industrial markets. Zacks AI-powered momentum stocks report
• Positive Sentiment: New LoRa products are now in production. Semtech expanded its LoRa Plus family with the LR2022 and LR2012, supporting the company’s connected-device and Internet of Things growth strategy. Semtech expands LoRa Plus family
• Neutral Sentiment: Consensus expectations remain bullish, but valuation is demanding. Zacks reported that analysts’ average price target implied 56.44% upside, while Semtech trades at a high price-to-earnings ratio of about 87.6 and has a beta of 2.35. Recent earnings also exceeded expectations, with revenue up 32.7% year over year, but the premium valuation leaves the stock sensitive to profit-taking and broader semiconductor-sector volatility. Zacks Semtech price target analysis

Semtech Trading Down 0.5%

Shares of NASDAQ SMTC opened at $132.27 on Wednesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70. The business's 50 day moving average price is $133.62 and its 200-day moving average price is $119.93. Semtech Corporation has a fifty-two week low of $55.18 and a fifty-two week high of $177.35. The company has a market cap of $12.34 billion, a price-to-earnings ratio of 87.60 and a beta of 2.35.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million during 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%.Semtech's revenue was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts expect that Semtech Corporation will post 2.64 earnings per share for the current year.

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.

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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