Investment firm Robert W. Baird has increased its price target for Semtech Corporation (NASDAQ: SMTC) from $70.00 to $88.00. This decision, communicated to investors in a research note on November 24, 2023, comes as the brokerage maintains an “outperform” rating on the semiconductor company’s stock.
Several other analysts have also weighed in on Semtech’s stock recently. Notably, Wall Street Zen downgraded Semtech from a “strong-buy” to a “buy” rating on November 15. Meanwhile, Needham & Company LLC reaffirmed a “buy” rating, setting a target price of $80.00. Other firms, including Craig Hallum, which raised its price target from $55.00 to $62.00, and Benchmark, which increased its target from $76.00 to $85.00, also maintained a “buy” rating. Oppenheimer upgraded Semtech from “market perform” to “outperform” with a target price of $81.00.
As a result of these evaluations, Semtech currently holds an average rating of “Moderate Buy” from a total of fifteen equity research analysts, with a consensus price target of $76.71 according to MarketBeat.
Quarterly Performance and Future Expectations
In its latest earnings report, Semtech posted $0.48 earnings per share (EPS), surpassing analysts’ expectations of $0.45 by $0.03. The company reported revenue of $266.97 million, slightly above projections of $266.36 million. This marks a significant year-over-year revenue increase of 12.8%, compared to $0.26 EPS during the same period last year. For the upcoming fourth quarter of 2026, Semtech has set a guidance range of 0.400-0.460 EPS, with analysts forecasting a projected -0.02 EPS for the current fiscal year.
Insider Transactions and Institutional Investments
Recent insider trading activity has also drawn attention. On October 22, Director Paul V. Walsh, Jr. sold 500 shares of stock at an average price of $66.24, totaling $33,120.00. Following this transaction, he holds 26,779 shares, valued at approximately $1,773,840.96, reflecting a 1.83% decrease in his position. The transaction was reported to the Securities and Exchange Commission.
Additionally, Chief Financial Officer Mark Lin sold 971 shares on October 3 at an average price of $72.83, amounting to $70,717.93. Post-sale, he owns 17,844 shares, valued at $1,299,578.52, which is a 5.16% decrease from his previous holdings. Over the past 90 days, insiders have sold a total of 4,971 shares worth $323,463, with corporate insiders owning 0.48% of the stock.
Institutional investors have also shown interest in Semtech. Nordea Investment Management AB acquired a new position valued at approximately $4,230,000 in the second quarter. Deutsche Bank AG increased its holdings by 168.1% in the first quarter, now owning 1,210,078 shares valued at $41,627,000 after purchasing an additional 758,642 shares. Wellington Management Group LLP boosted its stake by 7.9%, now holding 2,313,213 shares valued at $79,575,000, while EFG Asset Management North America Corp. raised its holdings by 15.6% in the second quarter.
About Semtech Corporation
Semtech designs, develops, manufactures, and markets a range of analog and mixed-signal semiconductors, alongside advanced algorithms. Its products include signal integrity solutions, optical data communications, and video transport technologies used in various industrial applications. The company’s offerings also cover integrated circuits for data centers, enterprise networks, and high-speed interface applications.
As Semtech continues to navigate the semiconductor landscape, analysts and investors will be closely watching its performance in the upcoming quarters, particularly as the firm sets its sights on achieving robust financial growth.
