Semtech (NASDAQ:SMTC) Upgraded at Northland Securities

Northland Securities upgraded shares of Semtech (NASDAQ:SMTC) from a market perform rating to an outperform rating in a report published on Friday morning, Marketbeat Ratings reports. They currently have $186.00 price objective on the semiconductor company’s stock. Northland Securities also issued estimates for Semtech’s Q3 2027 earnings at $0.93 EPS, Q4 2027 earnings at $1.01 EPS, FY2027 earnings at $2.73 EPS, Q1 2028 earnings at $1.07 EPS, Q2 2028 earnings at $1.21 EPS and FY2028 earnings at $4.88 EPS.

SMTC has been the subject of several other reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $200.00 target price on shares of Semtech in a research report on Wednesday, August 26th. Robert W. Baird boosted their price target on shares of Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Seaport Research Partners assumed coverage on shares of Semtech in a research report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 price target on the stock. TD Cowen raised their price objective on shares of Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Finally, Zacks Research raised shares of Semtech from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $213.11.

Semtech Price Performance

Semtech stock opened at $136.73 on Friday. The company has a market capitalization of $12.76 billion, a PE ratio of 90.55 and a beta of 2.41. 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 has a fifty-two week low of $60.28 and a fifty-two week high of $201.99. The firm has a 50 day moving average price of $156.97 and a 200 day moving average price of $139.69.

Semtech (NASDAQ:SMTC) last released its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%. The company had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. During the same period in the prior year, the firm earned $0.41 earnings per share. The firm’s revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Research analysts expect that Semtech will post 2.75 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Mark Lin sold 967 shares of Semtech stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $178.87, for a total value of $172,967.29. Following the completion of the transaction, the chief financial officer owned 35,999 shares in the company, valued at approximately $6,439,141.13. This trade represents a 2.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Hou sold 2,000 shares of Semtech stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $138.71, for a total value of $277,420.00. Following the completion of the transaction, the chief executive officer owned 60,799 shares of the company’s stock, valued at $8,433,429.29. The trade was a 3.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 13,737 shares of company stock worth $2,267,877 over the last ninety days. Company insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Andar Capital Management HK Ltd purchased a new position in Semtech in the 2nd quarter valued at $162,000,000. BlackRock Inc. purchased a new position in Semtech during the 2nd quarter worth $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Semtech by 396.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after buying an additional 672,447 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in shares of Semtech by 323.0% in 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. Finally, Atreides Management LP acquired a new stake in shares of Semtech in the 2nd quarter worth $89,214,000.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its near-term Q3 guidance and presented a longer-term outlook through 2030, helping support a recovery in the stock. Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades
• Positive Sentiment: The company expects data-center revenue to more than double in fiscal 2028 and 2029. Baird reaffirmed its “outperform” rating and $300 target, citing record bookings and strong two-year visibility from demand for copper, fiber and optical connectivity used in AI infrastructure. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: TD Cowen maintained a “buy” rating with a $215 price target, while BMO raised its target to $230. These targets indicate analysts see substantial upside if Semtech delivers on its data-center growth plans.
• Positive Sentiment: Investors purchased approximately 6,179 SMTC call options, about 43% above average daily volume, signaling increased speculative interest in a rebound.
• Neutral Sentiment: Stifel lowered its price target from $220 to $200 but retained a “buy” rating, suggesting valuation or execution concerns while preserving a positive long-term view. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets
• Negative Sentiment: Despite the improved outlook, some investors viewed SMTC as expensive after its roughly eightfold run over the past year. That valuation concern likely contributed to selling pressure around analyst day and could limit further gains unless earnings growth accelerates. Semtech Stock Looks Expensive After Its 8x Run

About Semtech

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company’s products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.