Semtech (NASDAQ:SMTC) Releases Q2 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) updated its second quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.590-0.630 for the period, compared to the consensus estimate of 0.490. The company issued revenue guidance of $323.0 million-$333.0 million, compared to the consensus revenue estimate of $300.4 million.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Stifel Nicolaus raised their target price on shares of Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research note on Wednesday. Benchmark raised their target price on shares of Semtech from $120.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday. Weiss Ratings downgraded shares of Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Tuesday, March 24th. Northland Securities downgraded shares of Semtech from an “outperform” rating to a “market perform” rating in a research note on Tuesday. Finally, UBS Group raised their target price on shares of Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday. Thirteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $179.73.

Semtech Trading Down 4.4%

NASDAQ:SMTC opened at $157.20 on Thursday. The company’s 50 day moving average price is $105.41 and its 200-day moving average price is $88.19. Semtech has a 52 week low of $34.59 and a 52 week high of $172.36. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89. The stock has a market cap of $14.64 billion, a price-to-earnings ratio of -403.08 and a beta of 2.22.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 EPS 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 18.45%. The firm had revenue of $291.00 million for the quarter, compared to analysts’ expectations of $283.53 million. During the same quarter in the prior year, the company posted $0.38 earnings per share. The business’s revenue for the quarter was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities research analysts forecast that Semtech will post 1.6 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mark Lin sold 974 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $78.42, for a total transaction of $76,381.08. Following the sale, the chief financial officer owned 33,343 shares in the company, valued at $2,614,758.06. This represents a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Martin Burvill sold 2,500 shares of the firm’s stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $88.98, for a total transaction of $222,450.00. Following the completion of the sale, the director owned 4,409 shares in the company, valued at $392,312.82. This represents a 36.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 36,884 shares of company stock valued at $3,069,245. Company insiders own 0.48% of the company’s stock.

Key Headlines Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech beat Q1 estimates with EPS of $0.51 versus $0.45 expected, and revenue of $291 million versus $283.5 million expected, with sales up 15.9% year over year on strong data center and infrastructure demand.
• Positive Sentiment: Management guided Q2 EPS to $0.59-$0.63 and revenue to $323 million-$333 million, both above consensus, signaling continued momentum in the next quarter.
• Positive Sentiment: Analysts turned more constructive after the results, with multiple firms raising price targets, including B. Riley to $210, Needham to $200, and Baird and UBS to $225, reinforcing optimism around data center and optical growth. Article: Semtech Stock Gains After Q1 Results Beat Estimates, Analysts Raise Price Targets
• Positive Sentiment: Commentary around the earnings call highlighted record revenue, accelerating data center growth, and design wins that may support further upside. Article: Semtech forecasts $328M Q2 revenue as it targets 35 percent sequential data center growth
• Neutral Sentiment: Analysts’ broader ratings remain favorable, with the stock carrying an average “Moderate Buy” recommendation.
• Negative Sentiment: Northland Securities downgraded Semtech to “market perform” before the earnings release, but that call has been overshadowed by the better-than-expected results and raised guidance.

Institutional Investors Weigh In On Semtech

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC boosted its holdings in Semtech by 1,215.4% in the third quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company’s stock worth $61,000 after purchasing an additional 790 shares during the last quarter. Daiwa Securities Group Inc. boosted its holdings in Semtech by 100.8% in the fourth quarter. Daiwa Securities Group Inc. now owns 1,195 shares of the semiconductor company’s stock worth $88,000 after purchasing an additional 600 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in Semtech by 24.1% in the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 247 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in Semtech in the fourth quarter worth approximately $112,000. Finally, State of Wyoming boosted its holdings in Semtech by 19.3% in the fourth quarter. State of Wyoming now owns 1,524 shares of the semiconductor company’s stock worth $112,000 after purchasing an additional 247 shares during the last quarter.

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.