Semtech (NASDAQ:SMTC) Shares Gap Up on Analyst Upgrade

Key Points

• Semtech shares jumped after Northland Securities upgraded the stock to “outperform,” opening at $149.40 versus a prior close of $140.80. Northland set a $182 price target, while analysts’ consensus rating is “Moderate Buy” with a $204.71 target.
• The company reported strong fiscal Q2 results, with revenue up 32.7% year over year to $341.9 million and adjusted EPS of $0.71, beating estimates. Semtech also issued Q3 guidance well above consensus, supported by strong data-center and AI-infrastructure demand.
• Insiders have been selling shares: executives sold 21,734 shares worth about $3.13 million over the past 90 days, with no reported insider purchases. The stock trades at a high earnings multiple of approximately 96.

Semtech Corporation (NASDAQ:SMTC - Get Free Report) shares gapped up prior to trading on Thursday after Northland Securities upgraded the stock from a market perform rating to an outperform rating. The stock had previously closed at $140.80, but opened at $149.40. Northland Securities now has a $182.00 price target on the stock. Semtech shares last traded at $143.4860, with a volume of 753,203 shares traded.

Several other equities analysts have also commented on SMTC. New Street Research set a $230.00 target price on shares of Semtech in a report on Thursday, August 20th. Stifel Nicolaus upped their price target on shares of Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. B. Riley Financial lifted their price objective on Semtech from $165.00 to $210.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Mizuho set a $225.00 target price on Semtech in a report on Wednesday, May 27th. Finally, Susquehanna raised their price target on Semtech from $170.00 to $200.00 and gave the stock a "positive" rating in a research report on Wednesday, May 27th. Fifteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $204.71.

Insider Buying and Selling at Semtech

In other news, EVP Jason Elliot Green sold 2,264 shares of the firm's stock in a transaction that occurred on 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 transaction, the executive vice president owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the business's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the sale, the chief operating officer owned 96,862 shares in the company, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 21,734 shares of company stock worth $3,133,986. Insiders own 0.44% of the company's stock.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly beat: Fiscal Q2 revenue rose 32.7% year over year to $341.9 million, exceeding the $328.7 million consensus estimate. Adjusted EPS was $0.71 versus expectations of $0.61, up from $0.41 a year earlier. Chipmaker Semtech Smashes Sales, Earnings Targets
• Positive Sentiment: Strong forward guidance: Semtech forecast fiscal Q3 revenue of approximately $405 million to $415 million and adjusted EPS of $1.02 to $1.08, substantially above analyst estimates of $359.3 million and $0.69, respectively. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Data-center momentum: Data-center sales reportedly jumped 91%, supported by AI infrastructure demand. Management highlighted a ramp toward 1.6-terabit products, record backlog and capacity expansion, while GaN demand is reportedly outpacing supply. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Analyst support: Analysts raised price targets following the results, with Needham maintaining a Buy rating and a $200 target; other published targets include $200 to $215. Analysts Revise Their Forecasts on Semtech
• Neutral Sentiment: Unusually high call-option activity reflected increased bullish speculation, but options positioning does not guarantee sustained buying.
• Negative Sentiment: Semtech trades at a high earnings multiple, and reported insider activity shows executives have sold shares without recorded purchases during the past six months, potentially limiting enthusiasm among risk-conscious investors.

Institutional Trading of Semtech

A number of large investors have recently made changes to their positions in the stock. FNY Investment Advisers LLC grew its stake in shares of Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Semtech in the 2nd quarter worth approximately $32,000. Banque Cantonale Vaudoise purchased a new position in shares of Semtech in the first quarter worth approximately $33,000. IFP Advisors Inc purchased a new position in shares of Semtech in the fourth quarter worth approximately $53,000. Finally, Allworth Financial LP bought a new stake in Semtech during the second quarter valued at approximately $55,000.

Semtech Trading Up 2.8%

The firm has a market capitalization of $13.48 billion, a PE ratio of 96.16 and a beta of 2.35. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The stock's fifty day simple moving average is $135.94 and its 200 day simple moving average is $118.62.

Semtech (NASDAQ:SMTC - Get Free Report) last released its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 23.54% and a net margin of 13.11%.The company had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the business earned $0.41 earnings per share. Semtech's quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts predict that Semtech Corporation will post 1.81 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.

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