Truist Financial Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price target decreased by equities researchers at Truist Financial from $90.00 to $62.00 in a research note issued on Friday, Benzinga reports. The firm presently has a “hold” rating on the semiconductor company’s stock. Truist Financial‘s price objective points to a potential upside of 8.59% from the stock’s previous close.

MCHP has been the topic of a number of other reports. BMO Capital Markets started coverage on shares of Microchip Technology in a report on Friday, August 21st. They set an “outperform” rating and a $95.00 price objective on the stock. Weiss Ratings upgraded Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Needham & Company LLC decreased their target price on Microchip Technology from $120.00 to $85.00 and set a “buy” rating for the company in a report on Friday. Citigroup dropped their target price on Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Finally, UBS Group reiterated a “buy” rating and issued a $120.00 price target (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $92.90.

Microchip Technology Stock Down 12.0%

NASDAQ MCHP traded down $7.75 during trading on Friday, reaching $57.10. 24,081,120 shares of the company’s stock traded hands, compared to its average volume of 10,443,814. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. 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 firm has a market cap of $31.00 billion, a price-to-earnings ratio of 84.71, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84. The company’s 50 day simple moving average is $75.19 and its two-hundred day simple moving average is $79.48.

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

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of Microchip Technology 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 sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,152,118.36. The trade was a 12.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Private Capital Advisors Inc. acquired a new stake in Microchip Technology during the third quarter worth $21,230,000. Junto Capital Management LP acquired a new position in shares of Microchip Technology in the 2nd quarter valued at $38,537,000. Viking Fund Management LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $8,555,000. Hsbc Holdings PLC grew its holdings in shares of Microchip Technology by 13.0% during the 1st quarter. Hsbc Holdings PLC now owns 1,160,129 shares of the semiconductor company’s stock worth $74,649,000 after purchasing an additional 133,813 shares during the period. Finally, LGT Fund Management Co Ltd. purchased a new position in shares of Microchip Technology during the 1st quarter worth $3,428,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Fiscal Q2 earnings of $0.97 per share and revenue of $1.62 billion topped analyst estimates. Revenue rose 42.2% year over year, supported by recovering industrial and data-center demand and improving margins. Article: MCHP Q2 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually.
• Neutral Sentiment: Several analysts cut their price targets after results, though many retained Buy or Overweight ratings. The revisions suggest lower near-term expectations, even as some analysts continue to see potential upside. Article: Microchip Technology Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: December-quarter guidance was the main setback: Microchip expects revenue to range from 3% lower to 1% higher sequentially and non-GAAP EPS of $0.87–$0.95, with the midpoint below consensus expectations. Article: Microchip expects December-quarter revenue down 3% to up 1%
• Negative Sentiment: Management cited supply constraints and rising costs as risks to near-term growth, tempering the positive demand-recovery story. Article: MCHP Q2 Earnings Call Highlights Supply Constraints and Growth

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.