Microchip Technology (NASDAQ:MCHP) Price Target Cut to $85.00 by Analysts at Jefferies Financial Group

Key Points

• Jefferies cut its price target on Microchip Technology from $100 to $85 but maintained a Buy rating; the revised target implies 45.67% upside from the previous close.
• Analyst views remain broadly positive, with a MarketBeat consensus rating of Moderate Buy and an average target of $91.64, although several firms have recently reduced their targets.
• Microchip beat quarterly earnings and revenue estimates, with revenue up 42.2% year over year, but its shares fell to $58.35 on Friday amid concerns about a softer near-term outlook.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective decreased by stock analysts at Jefferies Financial Group from $100.00 to $85.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Jefferies Financial Group's price objective points to a potential upside of 45.67% from the company's previous close.

Other equities research analysts have also recently issued reports about the company. TD Cowen cut 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. Truist Financial lowered their price target on shares of Microchip Technology from $90.00 to $62.00 and set a "hold" rating for the company in a research report on Friday. KeyCorp dropped their price objective on shares of Microchip Technology from $135.00 to $120.00 and set an "overweight" rating on the stock in a report on Friday. Susquehanna cut their price objective on shares of Microchip Technology from $120.00 to $100.00 and set a "positive" rating on the stock in a research report on Friday. Finally, Zacks Research downgraded shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $91.64.

Microchip Technology Stock Performance

MCHP traded down $6.50 on Friday, hitting $58.35. 47,392,436 shares of the company's stock were exchanged, compared to its average volume of 10,560,582. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The stock has a fifty day moving average of $74.85 and a two-hundred day moving average of $79.41. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The firm has a market cap of $31.68 billion, a PE ratio of 87.09, a P/E/G 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 EPS for the quarter, beating analysts' consensus estimates of $0.94 by $0.03. The company had revenue of $1.62 billion during 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%. Microchip Technology's quarterly revenue was up 42.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.35 earnings per share. On average, research analysts anticipate that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Transactions at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the 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 completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This represents a 12.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently made changes to their positions in the stock. TOP Private Wealth LLC. acquired a new stake in shares of Microchip Technology during the 2nd quarter worth approximately $29,000. GK Wealth Management LLC acquired a new stake in shares of Microchip Technology during the 3rd quarter worth about $29,000. Continuum Advisory LLC acquired a new stake in shares of Microchip Technology during the second quarter worth approximately $30,000. Johnson Financial Group Inc. bought a new position in Microchip Technology in the 2nd quarter valued at $31,000. Finally, Rakuten Securities Inc. acquired a new position in Microchip Technology during the 2nd quarter worth about $34,000. 91.51% of the stock is currently owned by institutional investors.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

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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