Palisade Capital Management LP Acquires New Shares in Semtech Corporation $SMTC

Palisade Capital Management LP purchased a new position in shares of Semtech Corporation (NASDAQ:SMTC) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 117,972 shares of the semiconductor company’s stock, valued at approximately $19,094,000. Semtech makes up approximately 0.8% of Palisade Capital Management LP’s portfolio, making the stock its 23rd biggest position. Palisade Capital Management LP owned about 0.13% of Semtech as of its most recent filing with the SEC.

A number of other hedge funds have also made changes to their positions in the stock. Royce & Associates LP increased its position in Semtech by 144.5% during the fourth quarter. Royce & Associates LP now owns 107,617 shares of the semiconductor company’s stock worth $7,930,000 after acquiring an additional 63,603 shares during the period. Argos Wealth Advisors LLC acquired a new stake in Semtech during the fourth quarter worth approximately $640,000. Geode Capital Management LLC grew its holdings in shares of Semtech by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 2,099,033 shares of the semiconductor company’s stock worth $154,704,000 after purchasing an additional 6,715 shares in the last quarter. Strs Ohio increased its position in shares of Semtech by 558.9% in the fourth quarter. Strs Ohio now owns 48,100 shares of the semiconductor company’s stock worth $3,544,000 after purchasing an additional 40,800 shares during the period. Finally, Swiss National Bank raised its position in shares of Semtech by 6.9% in the 1st quarter. Swiss National Bank now owns 183,000 shares of the semiconductor company’s stock valued at $14,071,000 after buying an additional 11,800 shares in the last quarter.

More Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly results topped expectations. Semtech reported adjusted earnings of $0.71 per share, above the $0.61–$0.62 analyst consensus and up from $0.41 a year earlier. Revenue reached a record $341.9 million, 33% above the prior-year period and ahead of expectations. Semtech Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Fiscal Q3 guidance was far above consensus. Semtech forecast revenue of approximately $410 million, or $405 million to $415 million, versus the $359.3 million analyst estimate. Adjusted diluted EPS guidance of about $1.05, with a range of $1.02 to $1.08, also exceeded the roughly $0.69 consensus. Semtech Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Profitability and cash generation improved. Gross margin was 53.8%, operating margin was 16.3%, operating cash flow was $68.9 million, and free cash flow was $61.4 million. Commentary highlighting AI-related demand, improving inventory levels, and continued growth expectations supported the bullish reaction. Semtech Posts Record Fiscal Q2 Sales
• Neutral Sentiment: Semtech is also hosting a LoRa ecosystem forum at the IOTE 2026 exhibition, which could provide additional updates on IoT adoption and product demand but is not yet a financial catalyst. Semtech Hosts LoRa Ecosystem Forum
• Negative Sentiment: Recent filings cited by market commentary show substantial insider selling and several institutional position reductions. These transactions may temper sentiment, although they are less significant than the earnings and guidance beat.

Insider Buying and Selling at Semtech

In related news, CEO Hong Q. Hou sold 2,000 shares of the business’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the sale, the chief executive officer directly owned 64,799 shares in the company, valued at approximately $8,618,267. The trade was a 2.99% decrease in their position. 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, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total transaction of $294,093.60. Following the completion of the transaction, the executive vice president owned 8,611 shares of the company’s stock, valued at $1,118,568.90. The trade was a 20.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,734 shares of company stock valued at $3,133,986 in the last quarter. Insiders own 0.44% of the company’s stock.

Analysts Set New Price Targets

Several analysts recently weighed in on SMTC shares. Weiss Ratings restated a “sell (d-)” rating on shares of Semtech in a research report on Thursday, June 18th. Roth Capital boosted their target price on Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research note on Monday. Stifel Nicolaus increased their target price on shares of Semtech from $157.00 to $188.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. UBS Group raised their price target on shares of Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Finally, New Street Research set a $230.00 price objective on shares of Semtech in a research report on Thursday, August 20th. Fourteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $198.00.

Semtech Stock Performance

SMTC stock opened at $127.52 on Wednesday. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The firm has a market cap of $11.88 billion, a PE ratio of -326.97 and a beta of 2.35. The business has a 50 day moving average of $136.12 and a 200-day moving average of $118.21. Semtech Corporation has a 12-month low of $53.62 and a 12-month high of $177.35.

Semtech (NASDAQ:SMTC) last announced its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The firm had revenue of $341.90 million during the quarter, compared to the consensus estimate of $328.67 million. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business’s revenue for the quarter was up 32.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, sell-side analysts expect that Semtech Corporation will post 1.81 earnings per share for the current year.

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.