Semtech (NASDAQ:SMTC) Issues Earnings Results, Misses Estimates By $0.18 EPS

Key Points

• Semtech reported an earnings per share (EPS) of $0.22 for the quarter, missing analysts' estimates of $0.40 by $0.18.
• The company updated its Q3 2026 guidance, adjusting the expected EPS to a range of $0.410-0.47.
• Semtech's stock has shown volatility, trading down to $51.00 following the earnings report, amidst a market capitalization of $4.42 billion.

Semtech (NASDAQ:SMTC - Get Free Report) issued its earnings results on Monday. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.18), Zacks reports. Semtech had a positive return on equity of 19.66% and a negative net margin of 12.52%. Semtech updated its Q3 2026 guidance to 0.410-0.47 EPS.

Semtech Price Performance

Semtech stock traded down $0.09 during midday trading on Monday, reaching $51.00. The company had a trading volume of 3,638,539 shares, compared to its average volume of 2,397,796. The company has a market capitalization of $4.42 billion, a P/E ratio of -24.76 and a beta of 1.94. Semtech has a 12-month low of $24.05 and a 12-month high of $79.52. The firm's fifty day simple moving average is $48.26 and its 200-day simple moving average is $39.81. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.53 and a quick ratio of 1.81.

Insider Transactions at Semtech

In other Semtech news, COO Asaf Silberstein sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $42.98, for a total value of $85,960.00. Following the transaction, the chief operating officer directly owned 105,996 shares of the company's stock, valued at $4,555,708.08. This trade represents a 1.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Mark Lin sold 999 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $43.84, for a total transaction of $43,796.16. Following the completion of the transaction, the chief financial officer directly owned 17,211 shares in the company, valued at $754,530.24. This trade represents a 5.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.48% of the company's stock.

Institutional Trading of Semtech

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Smartleaf Asset Management LLC boosted its holdings in Semtech by 24.1% in the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company's stock valued at $57,000 after purchasing an additional 247 shares during the period. Geneos Wealth Management Inc. boosted its holdings in Semtech by 2.9% in the second quarter. Geneos Wealth Management Inc. now owns 11,253 shares of the semiconductor company's stock valued at $508,000 after purchasing an additional 319 shares during the period. State of Wyoming boosted its holdings in Semtech by 13.0% in the second quarter. State of Wyoming now owns 2,955 shares of the semiconductor company's stock valued at $133,000 after purchasing an additional 339 shares during the period. Vident Advisory LLC boosted its holdings in Semtech by 8.6% in the second quarter. Vident Advisory LLC now owns 6,378 shares of the semiconductor company's stock valued at $288,000 after purchasing an additional 503 shares during the period. Finally, Empowered Funds LLC grew its stake in shares of Semtech by 11.5% during the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock worth $323,000 after purchasing an additional 968 shares in the last quarter.

Wall Street Analysts Forecast Growth

SMTC has been the subject of a number of research analyst reports. UBS Group reduced their target price on Semtech from $60.00 to $55.00 and set a "buy" rating for the company in a research note on Monday, May 5th. Stifel Nicolaus increased their price target on Semtech from $45.00 to $54.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Benchmark reaffirmed a "buy" rating and set a $68.00 price target on shares of Semtech in a research report on Wednesday, May 28th. Morgan Stanley set a $43.00 price target on Semtech in a research report on Wednesday, May 28th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $54.00 price target on shares of Semtech in a research report on Wednesday, May 28th. Eleven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $59.58.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.

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