Semtech (NASDAQ:SMTC) Price Target Raised to $225.00

Key Points

• Robert W. Baird raised Semtech’s price target from $110 to $225 and kept an outperform rating, implying about 36.8% upside from the current price.
• Semtech’s latest quarterly results beat expectations, with EPS of $0.51 versus $0.45 expected and revenue of $291 million topping estimates; the company also issued strong Q2 guidance.
• Analyst sentiment remains mostly positive overall, with 13 Buy ratings versus 3 Hold and 1 Sell, though Northland Securities recently downgraded the stock to market perform.

Semtech (NASDAQ:SMTC - Get Free Report) had its price objective increased by investment analysts at Robert W. Baird from $110.00 to $225.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the semiconductor company's stock. Robert W. Baird's price target would suggest a potential upside of 36.81% from the company's current price.

Several other research firms have also issued reports on SMTC. Northland Securities lowered shares of Semtech from an "outperform" rating to a "market perform" rating in a report on Tuesday. TD Cowen reaffirmed a "buy" rating on shares of Semtech in a report on Tuesday, February 24th. Benchmark boosted their target price on Semtech from $115.00 to $120.00 and gave the stock a "buy" rating in a research note on Tuesday, April 14th. B. Riley Financial restated a "buy" rating on shares of Semtech in a research note on Tuesday, May 12th. Finally, Craig Hallum boosted their target price on Semtech from $80.00 to $105.00 and gave the stock a "buy" rating in a research note on Tuesday, March 17th. Thirteen 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 company's stock. According to data from MarketBeat, Semtech has an average rating of "Moderate Buy" and a consensus target price of $141.67.

Semtech Trading Up 4.9%

Shares of NASDAQ:SMTC opened at $164.46 on Wednesday. Semtech has a 12-month low of $34.59 and a 12-month high of $168.29. The business's fifty day simple moving average is $104.05 and its 200-day simple moving average is $87.58. The company has a market capitalization of $15.31 billion, a PE ratio of -373.77 and a beta of 2.22. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.89.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.06. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The business had revenue of $291.00 million for the quarter, compared to the consensus estimate of $283.53 million. During the same period last year, the business posted $0.38 EPS. The business's 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. As a group, equities research analysts predict that Semtech will post 1.6 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Paul V. Walsh, Jr. sold 500 shares of the business's stock in a transaction 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 directly owned 23,279 shares in the company, valued at $3,217,390.59. The trade was a 2.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the business's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $90.11, for a total value of $180,220.00. Following the transaction, the chief executive officer owned 73,228 shares in the company, valued at approximately $6,598,575.08. This trade represents a 2.66% decrease in their ownership of the stock. 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. Insiders sold 36,884 shares of company stock worth $3,069,245 over the last quarter. 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. Think Investments LP acquired a new stake in Semtech during the 3rd quarter worth about $58,618,000. Ameriprise Financial Inc. lifted its position in Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock worth $321,040,000 after acquiring an additional 666,456 shares during the period. Atreides Management LP acquired a new stake in Semtech during the 2nd quarter worth about $29,880,000. Westfield Capital Management Co. LP lifted its position in Semtech by 23.0% during the 3rd quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company's stock worth $241,528,000 after acquiring an additional 633,113 shares during the period. Finally, Assenagon Asset Management S.A. lifted its position in Semtech by 323.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company's stock worth $60,051,000 after acquiring an additional 596,373 shares during the period.

Key Headlines Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech delivered a beat-and-raise quarter, with Q1 earnings and revenue both above estimates and Q2 guidance well above expectations. Semtech Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management pointed to faster data center growth, driven by 800G FiberEdge and 1.6T ramps, which supports a stronger second-half outlook. SMTC Q1 Earnings Call Flags Faster Data Center Growth
• Positive Sentiment: UBS and Baird both reiterated bullish ratings and raised their price targets to $225, signaling rising confidence in the company’s optical and data center momentum. Semtech Price Target Raised to $225...
• Neutral Sentiment: Northland Securities downgraded the stock to market perform, which partially offsets the otherwise positive post-earnings analyst tone.

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.