Microchip Technology (NASDAQ:MCHP) Given New $62.00 Price Target at Truist Financial

Key Points

• Truist cut its Microchip Technology price target to $62 from $90 and maintained a Hold rating; the new target implies 8.59% upside from the prior close.
• Shares fell 12% on Friday to $57.10. Other analysts also reduced price targets, though MarketBeat’s consensus rating remained “Moderate Buy” with a $92.90 target.
• Quarterly results beat estimates, with EPS of $0.97 and revenue of $1.62 billion, up 42.2% year over year. However, December-quarter guidance came in below consensus, with management citing supply constraints and rising costs.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its target price reduced by Truist Financial from $90.00 to $62.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "hold" rating on the semiconductor company's stock. Truist Financial's price objective suggests a potential upside of 8.59% from the company's previous close.

A number of other brokerages also recently commented on MCHP. Cantor Fitzgerald lowered their target price on Microchip Technology from $125.00 to $100.00 and set an "overweight" rating on the stock in a research note on Friday. UBS Group reissued 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. Citigroup lowered their price objective 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. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Finally, Wells Fargo & Company cut their target price on shares of Microchip Technology from $80.00 to $70.00 and set an "equal weight" rating for the company in a report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Microchip Technology 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 midday trading on Friday, hitting $57.10. 24,081,120 shares of the company traded hands, compared to its average volume of 10,443,814. 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 company has a market cap of $31.00 billion, a PE 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 200-day simple moving average is $79.48. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 EPS 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 firm had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same quarter in the previous year, the business posted $0.35 EPS. Microchip Technology's revenue was up 42.2% on a year-over-year basis. As a group, equities research analysts forecast that Microchip Technology will post 3.20 earnings per share for the current year.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MCHP. TOP Private Wealth LLC. bought a new position in shares of Microchip Technology during the second quarter valued at approximately $29,000. Continuum Advisory LLC bought a new stake in shares of Microchip Technology during the 2nd quarter worth approximately $30,000. Johnson Financial Group Inc. purchased a new position in Microchip Technology during the 2nd quarter valued at $31,000. Rakuten Securities Inc. purchased a new position in Microchip Technology during the 2nd quarter valued at $34,000. Finally, GK Wealth Management LLC purchased a new position in Microchip Technology during the 3rd quarter valued at $29,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology News Roundup

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.

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