Microchip Technology Incorporated (NASDAQ:MCHP) Receives $99.76 Consensus Target Price from Analysts

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have earned an average rating of “Moderate Buy” from the twenty-four brokerages that are currently covering the company, Marketbeat.com reports. Seven analysts have rated the stock with a hold recommendation, thirteen have given a buy recommendation and four have assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $99.7619.

A number of brokerages have recently commented on MCHP. Wells Fargo & Company cut their price target on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating on the stock in a report on Monday, July 20th. Needham & Company LLC increased their price target on Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. raised their price target on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Weiss Ratings lowered Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday. Finally, Barclays upped their price objective on Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th.

Insider Activity at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $93.44, for a total transaction of $467,200.00. Following the completion of the sale, the chief operating officer owned 135,508 shares in the company, valued at approximately $12,661,867.52. This trade represents a 3.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Steve Sanghi sold 76,469 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the completion of the transaction, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. The trade was a 0.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 136,721 shares of company stock valued at $12,793,719 in the last ninety days. Company insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of large investors have recently added to or reduced their stakes in MCHP. Abound Wealth Management increased its stake in Microchip Technology by 109.8% during the 2nd quarter. Abound Wealth Management now owns 1,114 shares of the semiconductor company’s stock worth $102,000 after acquiring an additional 583 shares during the period. Accel Wealth Management acquired a new stake in shares of Microchip Technology during the 2nd quarter worth $347,000. Tema ETFs LLC grew its holdings in shares of Microchip Technology by 9.8% during the 2nd quarter. Tema ETFs LLC now owns 11,393 shares of the semiconductor company’s stock worth $1,039,000 after purchasing an additional 1,015 shares in the last quarter. Handelsbanken Fonder AB increased its position in shares of Microchip Technology by 15.8% in the second quarter. Handelsbanken Fonder AB now owns 289,566 shares of the semiconductor company’s stock worth $26,408,000 after purchasing an additional 39,412 shares during the period. Finally, City Holding Co. increased its position in shares of Microchip Technology by 4.0% in the second quarter. City Holding Co. now owns 26,614 shares of the semiconductor company’s stock worth $2,427,000 after purchasing an additional 1,019 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Trading Down 3.1%

Shares of NASDAQ MCHP opened at $78.86 on Thursday. The company’s 50 day simple moving average is $90.64 and its 200 day simple moving average is $81.09. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The firm has a market capitalization of $42.82 billion, a P/E ratio of 375.54, a P/E/G ratio of 0.79 and a beta of 1.74. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the company earned $0.11 EPS. The company’s revenue for the quarter was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts predict that Microchip Technology will post 2.7 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s payout ratio is currently 866.67%.

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.