TD Cowen Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price target cut by research analysts at TD Cowen from $105.00 to $90.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a “hold” rating on the semiconductor company’s stock. TD Cowen’s target price suggests a potential upside of 6.71% from the company’s previous close.

Several other equities analysts have also recently weighed in on MCHP. Needham & Company LLC raised their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. UBS Group reissued a “buy” rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Barclays increased their target price on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. Finally, Truist Financial lifted their price target on shares of Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a research note on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $100.10.

Microchip Technology Stock Down 4.8%

Shares of MCHP stock traded down $4.25 on Monday, hitting $84.34. 3,176,812 shares of the stock were exchanged, compared to its average volume of 10,411,427. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The firm has a market capitalization of $45.80 billion, a P/E ratio of 402.00, a price-to-earnings-growth ratio of 0.91 and a beta of 1.74. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The business has a 50-day moving average of $93.64 and a 200 day moving average of $79.92.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology’s revenue for the quarter was up 35.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts anticipate that Microchip Technology will post 2.66 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $95.48, for a total value of $954,800.00. Following the transaction, the director directly owned 20,665 shares in the company, valued at approximately $1,973,094.20. This trade represents a 32.61% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 553,302 shares of company stock worth $49,673,635. Company insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Large investors have recently added to or reduced their stakes in the business. EFG International AG acquired a new stake in Microchip Technology during the 4th quarter valued at $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the fourth quarter valued at about $29,000. Garton & Associates Financial Advisors LLC bought a new position in shares of Microchip Technology in the fourth quarter valued at about $33,000. Reflection Asset Management acquired a new stake in shares of Microchip Technology during the 4th quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in shares of Microchip Technology by 4,663.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after buying an additional 513 shares during the period. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

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.