Microchip Technology (NASDAQ:MCHP) Price Target Cut to $58.00 by Analysts at Wells Fargo & Company

Microchip Technology (NASDAQ:MCHP) had its target price cut by Wells Fargo & Company from $60.00 to $58.00 in a research report sent to investors on Friday,Benzinga reports. They currently have an equal weight rating on the semiconductor company’s stock.

MCHP has been the subject of a number of other research reports. The Goldman Sachs Group began coverage on Microchip Technology in a research report on Thursday, July 10th. They set a “buy” rating and a $88.00 price target for the company. Zacks Research lowered Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 18th. Cantor Fitzgerald dropped their target price on shares of Microchip Technology from $70.00 to $65.00 and set a “neutral” rating for the company in a research report on Friday. Stifel Nicolaus cut their price target on shares of Microchip Technology from $82.00 to $75.00 and set a “buy” rating on the stock in a report on Friday. Finally, Raymond James Financial lifted their price target on shares of Microchip Technology from $65.00 to $75.00 and gave the company a “strong-buy” rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $73.47.

Microchip Technology Trading Down 5.2%

MCHP stock traded down $3.07 on Friday, hitting $56.28. 19,091,235 shares of the company were exchanged, compared to its average volume of 9,702,577. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.31 and a quick ratio of 1.33. The stock has a market capitalization of $30.37 billion, a price-to-earnings ratio of -165.53, a price-to-earnings-growth ratio of 1.79 and a beta of 1.57. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $77.20. The business’s fifty day moving average is $64.24 and its two-hundred day moving average is $64.08.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02. The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.13 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.46 EPS. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. As a group, research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 9th. Shareholders of record on Monday, November 24th will be given a $0.455 dividend. The ex-dividend date of this dividend is Monday, November 24th. This represents a $1.82 annualized dividend and a yield of 3.2%. Microchip Technology’s dividend payout ratio (DPR) is -535.29%.

Insiders Place Their Bets

In other news, Director Matthew W. Chapman sold 10,000 shares of the business’s stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the transaction, the director directly owned 30,665 shares of the company’s stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the firm’s stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the sale, the chief financial officer directly owned 30,010 shares of the company’s stock, valued at approximately $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of MCHP. Mizuho Markets Cayman LP bought a new position in shares of Microchip Technology during the second quarter worth about $107,584,000. Argonautica Private Wealth Management Inc. acquired a new stake in Microchip Technology during the first quarter valued at approximately $428,000. Charles Schwab Investment Management Inc. lifted its holdings in Microchip Technology by 3.9% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,266,402 shares of the semiconductor company’s stock worth $158,127,000 after buying an additional 122,633 shares during the last quarter. Victory Capital Management Inc. grew its position in shares of Microchip Technology by 18.2% in the 1st quarter. Victory Capital Management Inc. now owns 602,783 shares of the semiconductor company’s stock worth $29,181,000 after acquiring an additional 92,962 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its position in shares of Microchip Technology by 0.9% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company’s stock worth $805,087,000 after acquiring an additional 152,434 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.