B. Riley Financial Has Lowered Expectations for Microchip Technology (NASDAQ:MCHP) Stock Price

Key Points

• B. Riley cut its Microchip Technology price target from $98 to $85 but maintained a Buy rating; the new target implies 47.82% upside from the share price cited in the report.
• Other analysts also lowered targets, though the consensus rating remains Moderate Buy with a $94.24 average target.
• Microchip beat quarterly earnings and revenue estimates, with revenue up 42.2% year over year, but its next-quarter outlook was cautious: revenue is forecast to range from a 3% decline to 1% growth, and the EPS midpoint is below expectations.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target dropped by analysts at B. Riley Financial from $98.00 to $85.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. B. Riley Financial's price objective would suggest a potential upside of 47.82% from the company's current price.

Other equities analysts also recently issued reports about the company. UBS Group restated a "buy" rating and issued a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Needham & Company LLC decreased their target price on Microchip Technology from $120.00 to $85.00 and set a "buy" rating on the stock in a research note on Friday. TD Cowen decreased their target price on Microchip Technology from $90.00 to $75.00 and set a "hold" rating on the stock in a research note on Monday, October 19th. Zacks Research cut Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Susquehanna dropped their price target on Microchip Technology from $120.00 to $100.00 and set a "positive" rating for the company in a research note on Friday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $94.24.

Microchip Technology Price Performance

Shares of MCHP stock traded down $7.35 on Friday, hitting $57.50. 9,861,596 shares of the stock traded hands, compared to its average volume of 10,363,474. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The firm has a 50 day simple moving average of $75.19 and a two-hundred day simple moving average of $79.48. The firm has a market cap of $31.23 billion, a price-to-earnings ratio of 85.78, a PEG ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.03. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the prior year, the firm posted $0.35 EPS. Microchip Technology's quarterly revenue was up 42.2% compared to the same quarter last year. As a group, equities research analysts predict that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Activity at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer directly owned 28,573 shares in the company, valued at $2,152,118.36. The trade was a 12.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Eurizon Capital SGR S.p.A. grew its holdings in Microchip Technology by 7.3% in the third quarter. Eurizon Capital SGR S.p.A. now owns 74,504 shares of the semiconductor company's stock worth $5,797,000 after purchasing an additional 5,057 shares during the last quarter. Gagnon Securities LLC lifted its holdings in shares of Microchip Technology by 1.3% during the 3rd quarter. Gagnon Securities LLC now owns 26,577 shares of the semiconductor company's stock valued at $2,067,000 after purchasing an additional 348 shares during the last quarter. Jacobi Capital Management LLC purchased a new stake in shares of Microchip Technology during the 3rd quarter valued at $103,000. First Command Advisory Services Inc. boosted its position in shares of Microchip Technology by 413.5% in the 3rd quarter. First Command Advisory Services Inc. now owns 4,688 shares of the semiconductor company's stock worth $365,000 after purchasing an additional 3,775 shares in the last quarter. Finally, Bahl & Gaynor LLC boosted its position in shares of Microchip Technology by 35.6% in the 3rd quarter. Bahl & Gaynor LLC now owns 16,160 shares of the semiconductor company's stock worth $1,257,000 after purchasing an additional 4,240 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Key Microchip Technology News

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.

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