Microchip Technology (NASDAQ:MCHP) Issues Earnings Results, Meets Estimates

Microchip Technology (NASDAQ:MCHP) issued its quarterly earnings data on Monday. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.57, Briefing.com reports. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The firm’s revenue for the quarter was down 40.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.56 earnings per share. Microchip Technology updated its Q1 guidance to $0.48-0.56 EPS and its Q1 2025 guidance to 0.480-0.560 EPS.

Microchip Technology Trading Down 1.8 %

Shares of MCHP opened at $92.06 on Wednesday. Microchip Technology has a 1-year low of $68.75 and a 1-year high of $96.14. The company has a 50-day moving average of $88.45 and a 200 day moving average of $85.37. The firm has a market capitalization of $49.75 billion, a price-to-earnings ratio of 21.51, a PEG ratio of 2.79 and a beta of 1.60. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be issued a dividend of $0.452 per share. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Tuesday, May 21st. This represents a $1.81 dividend on an annualized basis and a yield of 1.96%. Microchip Technology’s dividend payout ratio (DPR) is presently 42.06%.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the completion of the sale, the chief financial officer now owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.07% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research analysts have weighed in on MCHP shares. Stifel Nicolaus increased their price target on shares of Microchip Technology from $98.00 to $102.00 and gave the stock a “buy” rating in a research report on Wednesday, May 1st. Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 target price on shares of Microchip Technology in a research note on Tuesday, January 30th. Truist Financial lifted their price objective on shares of Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research note on Tuesday. Citigroup lifted their price objective on shares of Microchip Technology from $100.00 to $104.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Piper Sandler reissued a “neutral” rating and issued a $90.00 price objective (up from $80.00) on shares of Microchip Technology in a research note on Tuesday. Six investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $98.47.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.