Microchip Technology (NASDAQ:MCHP) Upgraded to Strong-Buy at BMO Capital Markets

BMO Capital Markets upgraded shares of Microchip Technology (NASDAQ:MCHP) to a strong-buy rating in a research report released on Thursday,Zacks.com reports.

A number of other brokerages have also recently commented on MCHP. Barclays raised their price objective on Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Truist Financial lowered their target price 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. Needham & Company LLC lifted their price target on Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Finally, UBS Group restated a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $98.67.

Microchip Technology Stock Up 0.4%

Shares of NASDAQ MCHP opened at $76.08 on Thursday. The firm has a market cap of $41.31 billion, a PE ratio of 113.55, a P/E/G ratio of 0.53 and a beta of 1.76. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company’s fifty day simple moving average is $84.29 and its 200 day simple moving average is $81.49. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83.

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

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s payout ratio is 271.64%.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 837 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $80.26, for a total transaction of $67,177.62. Following the completion of the transaction, the chief financial officer owned 30,960 shares in the company, valued at approximately $2,484,849.60. This represents a 2.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Matthew W. Chapman sold 3,000 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the sale, the director owned 17,665 shares of the company’s stock, valued at $1,722,690.80. This trade represents a 14.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 8,837 shares of company stock worth $847,338. 1.79% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in shares of Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company’s stock valued at $827,000 after buying an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. grew its stake in shares of Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company’s stock worth $59,000 after acquiring an additional 616 shares during the period. Cresset Asset Management LLC increased its holdings in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company’s stock worth $805,000 after acquiring an additional 589 shares during the last quarter. AXA S.A. increased its holdings in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company’s stock worth $3,628,000 after acquiring an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina raised its stake in Microchip Technology by 1.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company’s stock valued at $17,348,000 after acquiring an additional 3,851 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.