Microchip Technology (NASDAQ:MCHP) Stock Gets Price Target Trim from KeyCorp

Microchip Technology (NASDAQ:MCHP) had its price target reduced by analysts at KeyCorp from $135.00 to $120.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has an “overweight” rating on the semiconductor company’s stock. KeyCorp‘s price target would indicate a potential upside of 96.62% from the company’s previous close.

Several other brokerages have also weighed in on MCHP. UBS Group reiterated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Cantor Fitzgerald cut their price objective on shares of Microchip Technology from $125.00 to $100.00 and set an “overweight” rating on the stock in a research report on Friday. TD Cowen reduced their target price on Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a research note on Monday, October 19th. Susquehanna decreased their target price on Microchip Technology from $120.00 to $100.00 and set a “positive” rating for the company in a research report on Friday. Finally, Truist Financial dropped their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average price target of $95.33.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $61.03 on Friday. 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 has a twelve month low of $48.52 and a twelve month high of $105.91. The company has a fifty day moving average of $75.19 and a 200-day moving average of $79.48. The firm has a market capitalization of $33.14 billion, a P/E ratio of 91.10, a P/E/G ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.03. The business had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. Microchip Technology’s revenue was up 42.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.35 earnings per share. As a group, sell-side analysts anticipate that Microchip Technology will post 3.20 EPS for the current year.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction 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 transaction, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently made changes to their positions in MCHP. State Street Corp boosted its stake in Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock valued at $2,631,273,000 after purchasing an additional 821,147 shares during the last quarter. Van ECK Associates Corp raised its stake in shares of Microchip Technology by 18.3% in the second quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock worth $750,102,000 after purchasing an additional 1,272,838 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Microchip Technology in the second quarter worth approximately $537,423,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Microchip Technology by 23.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock worth $461,520,000 after purchasing an additional 962,362 shares during the last quarter. Finally, Pictet Asset Management Holding SA lifted its holdings in shares of Microchip Technology by 30.7% in the third quarter. Pictet Asset Management Holding SA now owns 4,881,363 shares of the semiconductor company’s stock valued at $379,661,000 after purchasing an additional 1,145,500 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Fiscal Q2 earnings were $0.97 per share, above the $0.94 consensus, while revenue of $1.62 billion also topped estimates and rose 42.2% year over year. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Several firms still maintain bullish ratings despite reducing their targets: Susquehanna and Cantor Fitzgerald rate MCHP positive/overweight, while Needham and Rosenblatt retain buy ratings. Their revised targets remain above the $64.85 reference price. Article: Analysts Slash Their Forecasts After Q2 Results
• Neutral Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually; the dividend provides income but is unlikely to offset concerns about the outlook.
• Negative Sentiment: December-quarter guidance is the key concern: Microchip forecast revenue ranging from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, with the guidance midpoint below analyst expectations. Article: Microchip Expects December-Quarter Revenue to Decline 3% to Grow 1%
• Negative Sentiment: Analysts cut price targets after the results, including Susquehanna ($120 to $100), Cantor Fitzgerald ($125 to $100), Needham ($120 to $85), Rosenblatt ($120 to $115), and Evercore ISI ($117 to $75). The cuts signal a more cautious outlook, even where firms maintained favorable ratings. Article: Evercore ISI Adjusts Price Target

Microchip Technology Company Profile

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.