Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have earned an average recommendation of “Moderate Buy” from the twenty-five research firms that are covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation, fourteen have assigned a buy recommendation and four have issued a strong buy recommendation on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $98.1818.

Several research firms recently issued reports on MCHP. Truist Financial raised their price target on Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a report on Friday, May 8th. Wells Fargo & Company boosted their price objective on Microchip Technology from $75.00 to $95.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Citigroup upped their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $125.00 target price on shares of Microchip Technology in a research note on Wednesday, May 13th. Finally, Rosenblatt Securities lifted their price target on shares of Microchip Technology from $115.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, May 8th.

Microchip Technology Trading Down 4.6%

MCHP stock opened at $84.64 on Friday. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The firm has a market cap of $45.88 billion, a P/E ratio of 403.07, a P/E/G ratio of 0.91 and a beta of 1.74. The business’s 50 day moving average is $93.74 and its 200-day moving average is $79.03. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85.

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

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s payout ratio is presently 866.67%.

Insider Activity

In other news, COO Richard J. Simoncic sold 5,000 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the transaction, the chief operating officer owned 130,508 shares of the company’s stock, valued at $12,727,140.16. The trade was a 3.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $95.48, for a total value of $954,800.00. Following the completion of the transaction, the director directly owned 20,665 shares of the company’s stock, valued at approximately $1,973,094.20. The trade was a 32.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 553,302 shares of company stock worth $49,673,635 in the last ninety days. Company 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 made changes to their positions in the business. Wolverine Asset Management LLC grew its stake in Microchip Technology by 3,833.7% in the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock valued at $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new stake in shares of Microchip Technology during the 4th quarter worth approximately $6,691,000. Natixis Advisors LLC raised its stake in shares of Microchip Technology by 18.7% during the 3rd quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company’s stock worth $79,184,000 after purchasing an additional 194,048 shares in the last quarter. Peregrine Investment Management Inc. acquired a new stake in shares of Microchip Technology in the 1st quarter valued at approximately $5,492,000. Finally, Epoch Investment Partners Inc. boosted its holdings in shares of Microchip Technology by 16.5% in the 4th quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock valued at $85,967,000 after buying an additional 191,339 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.