Microchip Technology Incorporated (NASDAQ:MCHP) Stock Rated “Moderate Buy” by Wall Street Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has received an average rating of “Moderate Buy” from the twenty-four brokerages that are currently covering the company, MarketBeat Ratings reports. Eight equities research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $98.67.

A number of equities research analysts have recently weighed in on MCHP shares. TD Cowen cut their price objective on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research report on Monday, July 13th. Truist Financial cut their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a report on Friday, August 7th. Wells Fargo & Company reduced their price objective on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating on the stock in a research report on Monday, July 20th. BMO Capital Markets began coverage on shares of Microchip Technology in a report on Friday, August 21st. They issued an “outperform” rating and a $95.00 price objective for the company. Finally, Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $73.83 on Tuesday. The firm has a market cap of $40.09 billion, a PE ratio of 110.20, a price-to-earnings-growth ratio of 0.53 and a beta of 1.77. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The company’s fifty day simple moving average is $76.02 and its two-hundred day simple moving average is $82.30.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company’s quarterly revenue was up 38.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities analysts expect that Microchip Technology will post 3.16 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were given a dividend of $0.4550 per share. This represents a $1.82 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology’s payout ratio is presently 271.64%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. TOP Private Wealth LLC. purchased a new stake in Microchip Technology in the second quarter worth about $29,000. GK Wealth Management LLC bought a new position in shares of Microchip Technology in the third quarter worth about $29,000. Continuum Advisory LLC purchased a new position in shares of Microchip Technology during the 2nd quarter valued at about $30,000. Johnson Financial Group Inc. purchased a new position in shares of Microchip Technology during the 2nd quarter valued at about $31,000. Finally, Reflection Asset Management purchased a new position in shares of Microchip Technology during the 4th quarter valued at about $33,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

About Microchip Technology

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company’s product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.