Semtech (NASDAQ:SMTC) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Semtech from “hold” to “strong-buy,” adding to a broadly bullish Wall Street tone. Other analysts have also raised price targets, and the consensus rating is now “Moderate Buy” with an average target of $189.07.
• Semtech shares rose 3.7% and opened at $161.85, near their 12-month high of $177.35. The stock has also climbed well above its 50-day and 200-day moving averages, reflecting strong recent momentum.
• Recent earnings beat expectations: Semtech reported $0.51 EPS versus estimates of $0.45 and revenue of $291.02 million, up 15.9% year over year. The company also issued Q2 2027 guidance of $0.590 to $0.630 EPS.

Semtech (NASDAQ:SMTC - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research analysts also recently weighed in on the company. Benchmark upped their target price on Semtech from $120.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. Needham & Company LLC raised their target price on Semtech from $105.00 to $200.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Semtech in a research note on Thursday, June 18th. Susquehanna increased their price objective on Semtech from $170.00 to $200.00 and gave the stock a "positive" rating in a report on Wednesday, May 27th. Finally, Stifel Nicolaus raised their price objective on Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $189.07.

Semtech Stock Up 3.7%

Shares of NASDAQ SMTC opened at $161.85 on Monday. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. Semtech has a 12 month low of $42.38 and a 12 month high of $177.35. The firm has a market capitalization of $15.08 billion, a PE ratio of -415.00 and a beta of 2.32. The firm has a fifty day simple moving average of $142.59 and a two-hundred day simple moving average of $103.18.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.06. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm had revenue of $291.02 million for the quarter, compared to analyst estimates of $283.53 million. During the same quarter in the previous year, the firm posted $0.38 EPS. The company's revenue for the quarter was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Equities analysts expect that Semtech will post 1.81 earnings per share for the current year.

Insiders Place Their Bets

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of Semtech stock in a transaction on Friday, June 5th. The stock was sold at an average price of $162.10, for a total value of $324,200.00. Following the completion of the sale, the chief executive officer owned 69,228 shares of the company's stock, valued at approximately $11,221,858.80. This trade represents a 2.81% decrease in their position. The transaction 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, Director Martin Burvill sold 2,500 shares of the company's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $88.98, for a total value of $222,450.00. Following the transaction, the director directly owned 4,409 shares in the company, valued at approximately $392,312.82. The trade was a 36.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 13,500 shares of company stock worth $1,866,435 in the last 90 days. 0.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Semtech

Several hedge funds and other institutional investors have recently modified their holdings of the company. Jones Financial Companies Lllp grew its holdings in shares of Semtech by 12,214.3% in the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company's stock worth $89,000 after acquiring an additional 2,565 shares during the period. Empowered Funds LLC lifted its holdings in Semtech by 11.5% in the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after acquiring an additional 968 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Semtech by 5.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock worth $14,166,000 after purchasing an additional 22,629 shares during the last quarter. Strs Ohio bought a new stake in shares of Semtech during the 1st quarter valued at about $65,000. Finally, Cetera Investment Advisers bought a new stake in shares of Semtech during the 2nd quarter valued at about $226,000.

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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