Microchip Technology (NASDAQ:MCHP) Downgraded by Zacks Research to “Hold”

Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other brokerages also recently weighed in on MCHP. Cantor Fitzgerald boosted their price objective on Microchip Technology from $85.00 to $100.00 and gave the company an “overweight” rating in a research report on Monday, February 2nd. Jefferies Financial Group reiterated a “hold” rating on shares of Microchip Technology in a report on Wednesday, February 4th. Susquehanna increased their price target on shares of Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a research report on Thursday, January 22nd. JPMorgan Chase & Co. boosted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Finally, KeyCorp reiterated an “overweight” rating and set a $85.00 target price on shares of Microchip Technology in a report on Friday, February 6th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $75.47 on Tuesday. The company has a 50-day simple moving average of $73.39 and a two-hundred day simple moving average of $66.42. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $83.35. The firm has a market cap of $40.84 billion, a price-to-earnings ratio of -260.24, a PEG ratio of 1.91 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the business earned $0.20 earnings per share. The company’s quarterly revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities analysts forecast that Microchip Technology will post 1.03 EPS for the current year.

Insider Transactions at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the transaction, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in MCHP. Winnow Wealth LLC bought a new stake in shares of Microchip Technology during the third quarter valued at approximately $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology during the third quarter valued at $28,000. EFG International AG bought a new stake in shares of Microchip Technology during the 4th quarter valued at $29,000. Miller Capital Partners Inc. purchased a new stake in shares of Microchip Technology in the 4th quarter worth about $29,000. Finally, Salomon & Ludwin LLC grew its position in shares of Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after buying an additional 329 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.