Microchip Technology Incorporated (NASDAQ:MCHP) Receives $98.67 Consensus Target Price from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has earned a consensus rating of “Moderate Buy” from the twenty-four analysts that are presently covering the firm, MarketBeat Ratings reports. Eight equities research analysts have rated the stock with a hold recommendation, thirteen have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $98.6667.

A number of equities analysts have weighed in on MCHP shares. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Microchip Technology in a research note on Wednesday. BMO Capital Markets started coverage on Microchip Technology in a report on Friday, August 21st. They set an “outperform” rating and a $95.00 price objective for the company. TD Cowen cut their target price 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. Citigroup reduced their target price on Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Finally, Truist Financial lowered their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Friday, August 7th.

Microchip Technology Price Performance

MCHP opened at $74.20 on Friday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. The stock has a market capitalization of $40.29 billion, a price-to-earnings ratio of 110.75, a price-to-earnings-growth ratio of 0.52 and a beta of 1.75. The business has a 50-day moving average of $78.36 and a two-hundred day moving average of $81.05. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating 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 company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the company posted $0.27 EPS. The company’s quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, research analysts expect that Microchip Technology will post 3.16 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology’s payout ratio is currently 271.64%.

Insider Activity

In related news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This represents a 12.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Resonant Capital Advisors LLC lifted its position in shares of Microchip Technology by 0.9% in the 1st quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock worth $810,000 after acquiring an additional 118 shares during the period. Apella Capital LLC increased its position in shares of Microchip Technology by 4.8% during the second quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company’s stock valued at $225,000 after purchasing an additional 122 shares during the period. Bridgewater Advisors Inc. increased its position in shares of Microchip Technology by 4.2% during the second quarter. Bridgewater Advisors Inc. now owns 3,331 shares of the semiconductor company’s stock valued at $304,000 after purchasing an additional 133 shares during the period. MCF Advisors LLC boosted its position in shares of Microchip Technology by 25.8% during the 4th quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 135 shares in the last quarter. Finally, Gagnon Securities LLC boosted its stake in Microchip Technology by 0.5% in the 4th quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company’s stock valued at $1,731,000 after buying an additional 137 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

About Microchip Technology

Microchip Technology Incorporated (NASDAQ: MCHP) develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.