Canada Pension Plan Investment Board Buys New Position in Semtech Corporation $SMTC

Canada Pension Plan Investment Board bought a new stake in Semtech Corporation (NASDAQ:SMTC) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 242,900 shares of the semiconductor company’s stock, valued at approximately $39,313,000.

Several other institutional investors also recently added to or reduced their stakes in the business. FNY Investment Advisers LLC lifted its holdings in shares of Semtech by 900.0% during the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock worth $32,000 after buying an additional 180 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Semtech in the second quarter worth $32,000. Banque Cantonale Vaudoise acquired a new stake in shares of Semtech in the first quarter worth $33,000. IFP Advisors Inc bought a new position in Semtech during the fourth quarter worth $53,000. Finally, Allworth Financial LP bought a new position in Semtech during the second quarter worth $55,000.

Semtech Stock Performance

Shares of NASDAQ SMTC opened at $142.43 on Friday. The firm has a market capitalization of $13.27 billion, a price-to-earnings ratio of 94.33 and a beta of 2.35. Semtech Corporation has a one year low of $55.18 and a one year high of $177.35. The business has a fifty day simple moving average of $135.62 and a 200 day simple moving average of $119.01. The company has a current ratio of 1.70, a quick ratio of 1.62 and a debt-to-equity ratio of 0.47.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. The firm had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The business’s revenue was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Sell-side analysts expect that Semtech Corporation will post 1.81 EPS for the current year.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Quarterly beat and stronger outlook: Semtech reported adjusted EPS of $0.71 versus the $0.61 consensus estimate and revenue of approximately $341.9 million, ahead of expectations. Revenue grew roughly 33% year over year, while management issued Q3 EPS guidance of $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance
• Positive Sentiment: AI and data-center demand are accelerating: Data-center revenue reportedly rose 91%, supported by AI infrastructure investment. Management highlighted a ramp toward 1.6-terabit connectivity, record backlog, capacity expansion, and sustained demand for higher-speed networking products. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth
• Positive Sentiment: Portfolio shift may improve profitability: Semtech’s planned divestiture of its cellular business is intended to concentrate resources on data-center and connectivity markets, while potentially creating a structural improvement in margins. Debt reduction and stronger profitability also supported the bullish reaction. Semtech Dumps Cellular Business to Double Down on Data Centers
• Positive Sentiment: Analysts raised their stance: Northland Securities upgraded SMTC from Market Perform to Outperform and set a $182 price target, arguing that connectivity is becoming a key bottleneck for AI infrastructure. Needham maintained a Buy rating with a $200 target, while other analysts cited targets as high as $215. Northland lifts Semtech rating, sees connectivity as the AI bottleneck
• Neutral Sentiment: Investor expectations are elevated: Increased call-option activity reflects bullish positioning, but SMTC trades at a high earnings multiple and remains exposed to execution, capacity-expansion, and semiconductor-cycle risks.

Insider Activity at Semtech

In other news, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. The trade was a 20.82% decrease in their position. 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, COO Asaf Silberstein sold 8,500 shares of the stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the transaction, the chief operating officer directly owned 96,862 shares of the company’s stock, valued at $12,378,963.60. This trade represents a 8.07% 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 worth $3,133,986 in the last ninety days. Company insiders own 0.44% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Craig Hallum upped their target price on shares of Semtech from $105.00 to $205.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Semtech in a report on Thursday, June 18th. Benchmark reaffirmed a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. B. Riley Financial increased their target price on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Finally, Robert W. Baird lifted their target price on Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $204.71.

Semtech Company Profile

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.