Microchip Technology (NASDAQ:MCHP) Stock Price Target Cut by Wells Fargo & Company

Microchip Technology (NASDAQ:MCHP) had its target price decreased by research analysts at Wells Fargo & Company from $80.00 to $70.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has an “equal weight” rating on the semiconductor company’s stock. Wells Fargo & Company‘s target price would suggest a potential upside of 21.73% from the stock’s current price.

Other analysts have also issued research reports about the company. Cantor Fitzgerald decreased their price target on Microchip Technology from $125.00 to $100.00 and set an “overweight” rating on the stock in a report on Friday. Truist Financial dropped their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research note on Friday, August 7th. Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. KeyCorp reduced their target price on shares of Microchip Technology from $135.00 to $120.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Susquehanna reduced their target price on shares of Microchip Technology from $120.00 to $100.00 and set a “positive” rating on the stock in a research note on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $94.24.

Microchip Technology Trading Down 11.3%

NASDAQ MCHP traded down $7.35 during trading hours on Friday, hitting $57.50. 9,861,596 shares of the company were exchanged, compared to its average volume of 10,363,474. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The stock has a 50-day moving average price of $75.19 and a 200 day moving average price of $79.48. The stock has a market cap of $31.23 billion, a PE ratio of 85.78, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.03. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The company’s revenue for the quarter was up 42.2% on a year-over-year basis. During the same period last year, the company earned $0.35 EPS. Analysts forecast that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction on Tuesday, August 25th. The stock was 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 directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. TOP Private Wealth LLC. bought a new position in Microchip Technology in the 2nd quarter worth about $29,000. Continuum Advisory LLC purchased a new position in shares of Microchip Technology during the second quarter worth approximately $30,000. Johnson Financial Group Inc. bought a new stake in shares of Microchip Technology during the second quarter valued at approximately $31,000. Rakuten Securities Inc. bought a new stake in shares of Microchip Technology during the second quarter valued at approximately $34,000. Finally, GK Wealth Management LLC bought a new stake in shares of Microchip Technology during the third quarter valued at approximately $29,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology News Roundup

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

About Microchip Technology

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.