Two Sigma Securities LLC bought a new stake in Semtech Corporation (NASDAQ:SMTC – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 13,894 shares of the semiconductor company’s stock, valued at approximately $2,249,000.
Other institutional investors have also modified their holdings of the company. FNY Investment Advisers LLC boosted its position in shares of Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after acquiring an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Semtech during the second quarter worth about $32,000. Banque Cantonale Vaudoise purchased a new position in Semtech during the first quarter worth about $33,000. IFP Advisors Inc acquired a new position in Semtech in the 4th quarter valued at about $53,000. Finally, Allworth Financial LP acquired a new position in Semtech in the 2nd quarter valued at about $55,000.
Key Stories Impacting Semtech
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 Price Performance
Semtech (NASDAQ:SMTC – Get Free Report) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The firm had revenue of $341.87 million during the quarter, compared to analysts’ expectations of $328.67 million. During the same quarter in the previous year, the business posted $0.41 earnings per share. The business’s quarterly 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. Analysts forecast that Semtech Corporation will post 2.63 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades
A number of analysts have recently issued reports on the stock. 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 Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Roth Capital set a $220.00 price objective on Semtech in a research report on Wednesday. Oppenheimer set a $200.00 target price on Semtech in a research note on Wednesday, May 27th. Finally, Northland Securities upgraded Semtech from a “market perform” rating to an “outperform” rating and set a $182.00 target price on the stock in a research report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $204.71.
Read Our Latest Stock Analysis on SMTC
Insider Buying and Selling
In other news, CFO Mark Lin sold 970 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total value of $145,897.70. Following the sale, the chief financial officer directly 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 Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Michael Wilson sold 5,500 shares of Semtech stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $170.00, for a total value of $935,000.00. Following the completion of the transaction, the insider owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. This trade represents a 6.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,734 shares of company stock worth $3,133,986 over the last three months. 0.44% of the stock is owned by insiders.
About Semtech
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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