Semtech Corporation (NASDAQ:SMTC) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Semtech has a “Moderate Buy” consensus from 17 analysts, with 13 Buy ratings and an average 12-month price target of about $179.73.
• The company reported better-than-expected Q1 results, earning $0.51 per share on revenue of $291 million, both above estimates, while revenue rose 15.9% year over year.
• Management issued bullish Q2 guidance of $0.59-$0.63 EPS and $323 million-$333 million in revenue, and several analysts responded by raising price targets as high as $225.

Shares of Semtech Corporation (NASDAQ:SMTC - Get Free Report) have been given an average recommendation of "Moderate Buy" by the seventeen analysts that are currently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, three have given a hold recommendation and thirteen have assigned a buy recommendation to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $179.7333.

SMTC has been the subject of a number of recent analyst reports. Craig Hallum raised their price objective on Semtech from $105.00 to $205.00 and gave the company a "buy" rating in a research report on Wednesday. UBS Group raised their price objective on Semtech from $165.00 to $225.00 and gave the company a "buy" rating in a research report on Wednesday. Susquehanna raised their price objective on Semtech from $170.00 to $200.00 and gave the company a "positive" rating in a research report on Wednesday. Needham & Company LLC raised their price objective on Semtech from $105.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, Oppenheimer set a $200.00 price objective on Semtech in a research report on Wednesday.

Semtech Stock Performance

Shares of NASDAQ SMTC opened at $157.20 on Thursday. The stock has a 50 day moving average price of $105.41 and a 200 day moving average price of $88.19. Semtech has a 52 week low of $34.59 and a 52 week high of $172.36. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.66 and a current ratio of 2.37. The stock has a market capitalization of $14.64 billion, a PE ratio of -403.08 and a beta of 2.22.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.45% and a negative net margin of 3.05%.The firm had revenue of $291.00 million during the quarter, compared to analysts' expectations of $283.53 million. During the same period in the prior year, the firm posted $0.38 earnings per share. The business's quarterly revenue was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Analysts predict that Semtech will post 1.6 earnings per share for the current fiscal year.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech beat Q1 expectations, reporting EPS of $0.51 versus $0.45 expected and revenue of $291 million versus $283.5 million expected, with year-over-year revenue growth of 15.9%. Semtech Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management guided Q2 revenue to $323 million-$333 million and EPS to $0.59-$0.63, both above consensus, suggesting continued momentum into the next quarter. Semtech forecasts $328M Q2 revenue as it targets 35 percent sequential data center growth
• Positive Sentiment: Analysts raised price targets after the report, including B. Riley to $210, Needham to $200, Baird to $225, and UBS reiterated a Buy with a $225 target, reinforcing confidence in the growth story. Semtech Stock Gains After Q1 Results Beat Estimates, Analysts Raise Price Targets
• Neutral Sentiment: Commentary from earnings-call coverage highlighted record revenue and strong design wins, especially around data center and optical products, but these are supportive rather than new catalysts. Semtech Corp Q1 2027 Earnings Call Highlights
• Negative Sentiment: Northland Securities downgraded the stock to market perform ahead of the results, showing not all analysts were uniformly bullish. Northland downgrade coverage

Insider Buying and Selling

In other news, Director Paul V. Walsh, Jr. sold 500 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $138.21, for a total transaction of $69,105.00. Following the transaction, the director owned 23,279 shares in the company, valued at approximately $3,217,390.59. This trade represents a 2.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 7,500 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $81.73, for a total value of $612,975.00. Following the transaction, the executive vice president owned 8,811 shares in the company, valued at approximately $720,123.03. This trade represents a 45.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 36,884 shares of company stock valued at $3,069,245. Insiders own 0.48% of the company's stock.

Hedge Funds Weigh In On Semtech

A number of large investors have recently made changes to their positions in SMTC. Think Investments LP bought a new position in shares of Semtech during the third quarter worth approximately $58,618,000. Ameriprise Financial Inc. increased its stake in shares of Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock worth $321,040,000 after purchasing an additional 666,456 shares during the period. Atreides Management LP bought a new position in shares of Semtech during the second quarter worth approximately $29,880,000. Westfield Capital Management Co. LP increased its stake in shares of Semtech by 23.0% during the third quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company's stock worth $241,528,000 after purchasing an additional 633,113 shares during the period. Finally, Assenagon Asset Management S.A. increased its stake in shares of Semtech by 323.0% during the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company's stock worth $60,051,000 after purchasing an additional 596,373 shares during the period.

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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