UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Boosts Stake in Semtech Corporation $SMTC

Key Points

• UBS Asset Management increased its Semtech stake by 396.3% in the second quarter, acquiring 672,447 additional shares and holding 842,125 shares valued at approximately $136.3 million.
• Semtech reported quarterly EPS of $0.71, exceeding the $0.61 analyst estimate, while revenue rose 32.7% year over year to $341.87 million. Shares opened at $132.27, down 0.5%.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $204.71, though the stock’s elevated valuation—about 87.6 times earnings—could increase volatility. Insiders sold 21,734 shares worth approximately $3.1 million over the past three months.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 396.3% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 842,125 shares of the semiconductor company's stock after buying an additional 672,447 shares during the quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned 0.90% of Semtech worth $136,298,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently modified their holdings of the company. ABS Investment Management LLC purchased a new stake in shares of Semtech during the second quarter valued at approximately $178,035,000. FNY Investment Advisers LLC lifted its holdings in Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Semtech in the second quarter worth $32,000. Allworth Financial LP purchased a new position in Semtech in the second quarter worth $55,000. Finally, Allied Private Wealth LLC bought a new position in Semtech in the 2nd quarter valued at $65,000.

Insider Activity

In other news, CFO Mark Lin sold 970 shares of the company's stock in a transaction on 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 owned 34,896 shares of the company's stock, 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 can be accessed 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 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 sale, 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. 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. Over the last three months, insiders sold 21,734 shares of company stock worth $3,133,986. Company insiders own 0.44% of the company's stock.

Semtech Trading Down 0.5%

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

Semtech (NASDAQ:SMTC - Get Free Report) last released 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 company had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. Semtech's revenue was up 32.7% compared to the same quarter last year. During the same period last year, the business earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities analysts forecast that Semtech Corporation will post 2.64 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently issued reports on SMTC. Morgan Stanley raised their target price on Semtech from $175.00 to $195.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 26th. Roth Capital set a $220.00 price target on shares of Semtech in a report on Wednesday, August 26th. Zacks Research lowered shares of Semtech from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Semtech in a report on Thursday, June 18th. Finally, Benchmark reaffirmed a "buy" rating on shares of Semtech in a research report on Thursday, August 20th. Fifteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Semtech presently has a consensus rating of "Moderate Buy" and an average target price of $204.71.

Key Headlines Impacting Semtech

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 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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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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