Microchip Technology (NASDAQ:MCHP) Rating Lowered to Hold at Wall Street Zen

Microchip Technology (NASDAQ:MCHP) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday, Wall Street Zen reports.

MCHP has been the subject of several other research reports. Cantor Fitzgerald decreased their price target on shares of Microchip Technology from $125.00 to $100.00 and set an “overweight” rating for the company in a research note on Friday. Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. KeyCorp reduced their price objective on Microchip Technology from $135.00 to $120.00 and set an “overweight” rating for the company in a report on Friday. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, Citigroup decreased their target price on Microchip Technology from $95.00 to $75.00 and set a “buy” rating for the company in a research report on Friday. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $91.64.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $58.35 on Friday. The company has a market capitalization of $31.68 billion, a PE ratio of 44.20, a price-to-earnings-growth ratio of 0.40 and a beta of 1.84. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.33 and a current ratio of 2.24. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a 50-day simple moving average of $74.85 and a 200 day simple moving average of $79.41.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. Microchip Technology had a net margin of 14.96% and a return on equity of 20.32%. The firm had revenue of $1.62 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same period in the previous year, the company earned $0.35 earnings per share. The company’s quarterly revenue was up 42.2% on a year-over-year basis. On average, research analysts predict that Microchip Technology will post 3.20 EPS for the current year.

Insiders Place Their Bets

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

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently modified their holdings of the business. MSH Capital Advisors LLC grew its position in shares of Microchip Technology by 6.3% in the third quarter. MSH Capital Advisors LLC now owns 3,823 shares of the semiconductor company’s stock valued at $297,000 after purchasing an additional 228 shares in the last quarter. Diversified Trust Co raised its stake in shares of Microchip Technology by 77.4% during the 3rd quarter. Diversified Trust Co now owns 19,840 shares of the semiconductor company’s stock valued at $1,543,000 after purchasing an additional 8,655 shares during the period. Aberdeen Group plc lifted its holdings in Microchip Technology by 403.4% during the 3rd quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock worth $180,143,000 after purchasing an additional 1,856,181 shares in the last quarter. Allworth Financial LP lifted its holdings in Microchip Technology by 18.8% during the 3rd quarter. Allworth Financial LP now owns 12,342 shares of the semiconductor company’s stock worth $960,000 after purchasing an additional 1,957 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its stake in Microchip Technology by 6.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,615 shares of the semiconductor company’s stock worth $281,000 after purchasing an additional 229 shares during the period. Institutional investors own 91.51% of the company’s stock.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

About Microchip Technology