Wall Street Zen Upgrades Semtech (NASDAQ:SMTC) to “Strong-Buy”

Semtech (NASDAQ:SMTC) was upgraded by Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research report issued to clients and investors on Saturday.

A number of other research analysts also recently weighed in on SMTC. Citigroup downgraded shares of Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. TD Cowen upped their price objective on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. B. Riley Financial increased their target price on shares of Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Morgan Stanley raised their target price on Semtech from $175.00 to $195.00 and gave the company an “equal weight” rating in a report on Wednesday. Finally, Oppenheimer set a $200.00 price target on Semtech in a research report on Wednesday, May 27th. Fifteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Semtech has an average rating of “Moderate Buy” and a consensus target price of $204.71.

Semtech Stock Performance

Shares of NASDAQ SMTC opened at $131.17 on Friday. The business has a 50 day simple moving average of $135.08 and a 200 day simple moving average of $119.31. Semtech has a 52 week low of $55.18 and a 52 week high of $177.35. The stock has a market cap of $12.24 billion, a price-to-earnings ratio of 86.87 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70.

Semtech (NASDAQ:SMTC) last issued its quarterly earnings data 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. The firm had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company’s revenue for the quarter was up 32.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, research analysts predict that Semtech will post 2.63 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Mark Lin sold 970 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the sale, the chief financial officer owned 34,896 shares in the company, valued at approximately $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of the business’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $170.00, for a total transaction of $935,000.00. Following the transaction, the insider directly owned 80,876 shares in the company, valued at $13,748,920. This trade represents a 6.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 21,734 shares of company stock worth $3,133,986. 0.44% of the stock is currently owned by company insiders.

Institutional Trading of Semtech

A number of hedge funds have recently bought and sold shares of the stock. Leonteq Securities AG boosted its stake in shares of Semtech by 11.2% in the 1st quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock valued at $90,000 after purchasing an additional 118 shares during the last quarter. Corient Private Wealth LP grew its position in shares of Semtech by 4.0% during the 2nd quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company’s stock worth $515,000 after buying an additional 122 shares during the period. Stephens Inc. AR raised its stake in shares of Semtech by 3.3% during the fourth quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company’s stock worth $325,000 after buying an additional 142 shares during the last quarter. Captrust Financial Advisors lifted its holdings in Semtech by 0.8% in the fourth quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company’s stock valued at $1,422,000 after buying an additional 162 shares during the period. Finally, ABS Investment Management LLC acquired a new position in Semtech in the second quarter valued at approximately $178,035,000.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Strong quarterly results: Semtech reported record sales of approximately $341.9 million, up about 33% year over year, while adjusted earnings of $0.71 per share exceeded the $0.61 consensus estimate. Net income reportedly expanded 89%. Why Semtech Stock Was Flying This Week
• Positive Sentiment: AI data-center momentum: Reports highlight roughly $100 million in AI data-center demand and identify connectivity as a potential bottleneck for AI infrastructure. This supports expectations for continued growth in Semtech’s analog and signal-integrity businesses. Analog Bets Pay Off: Semtech Shatters Records as AI Data Center Demand Hits $100M
• Positive Sentiment: Raised outlook and improving balance sheet: Coverage cites higher guidance, expanding margins, debt reduction, and expectations for stronger near-term growth. The company’s reported third-quarter fiscal 2027 EPS outlook is $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance
• Positive Sentiment: Analyst support: Northland Securities upgraded Semtech to Outperform with a $182 price target, while Needham reaffirmed its Buy rating. Other coverage points to a consensus target near $200, reinforcing the bullish narrative. Northland lifts Semtech rating
• Neutral Sentiment: New product opportunity: The LoRa Plus transceiver lineup could strengthen Semtech’s position in long-range IoT connectivity, although the financial contribution and adoption pace remain uncertain. What Does Semtech Gain From Its New LoRa Plus Transceivers?
• Negative Sentiment: Valuation and volatility risks: Semtech trades at a high earnings multiple, and its elevated beta makes the stock sensitive to profit-taking after a sharp advance. Unusually high trading volume indicates that investors are actively reassessing the shares following earnings. Semtech Sees Unusually-High Trading Volume After Strong Earnings

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.