Microchip Technology (NASDAQ:MCHP) Stock Price Target Lowered at Needham & Company LLC

Key Points

• Needham cut its Microchip Technology price target from $120 to $85 but maintained a Buy rating; the new target implies 31.07% upside from the prior close.
• Microchip beat quarterly estimates, reporting EPS of $0.97 versus $0.94 expected and revenue of $1.62 billion versus $1.61 billion expected. Revenue rose 42.2% year over year.
• The company’s December-quarter outlook was below consensus, forecasting revenue from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, tempering the positive earnings report.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its target price lowered by equities researchers at Needham & Company LLC from $120.00 to $85.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's target price would suggest a potential upside of 31.07% from the company's previous close.

A number of other analysts also recently issued reports on the company. Truist Financial lowered their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a research report on Friday, August 7th. BMO Capital Markets assumed coverage on shares of Microchip Technology in a research report on Friday, August 21st. They set an "outperform" rating and a $95.00 price objective on the stock. Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Cantor Fitzgerald reduced their target price on shares of Microchip Technology from $125.00 to $100.00 and set an "overweight" rating on the stock in a research note on Friday. Finally, Rosenblatt Securities restated a "buy" rating and issued a $120.00 target price 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 given a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $94.62.

Microchip Technology Trading Down 13.9%

Shares of NASDAQ MCHP opened at $64.85 on Friday. Microchip Technology has a 1-year low of $48.52 and a 1-year 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 business's 50 day moving average is $75.19 and its two-hundred day moving average is $79.48. The stock has a market capitalization of $35.21 billion, a P/E ratio of 96.79, a PEG ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP - Get Free Report) 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. As a group, research analysts expect that Microchip Technology will post 3.20 EPS for the current year.

Insider Buying and Selling

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction 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 in the company, valued at $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 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 company insiders.

Institutional Trading of Microchip Technology

A number of large investors have recently made changes to their positions in the stock. State Street Corp raised its position in Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company's stock valued at $2,631,273,000 after purchasing an additional 821,147 shares in the last quarter. Van ECK Associates Corp lifted its holdings in shares of Microchip Technology by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company's stock worth $750,102,000 after buying an additional 1,272,838 shares during the period. Artemis Wealth Advisors LLC purchased a new position in shares of Microchip Technology during the second quarter valued at $541,413,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Microchip Technology during the second quarter valued at $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Microchip Technology by 23.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company's stock valued at $461,520,000 after buying an additional 962,362 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

More Microchip Technology News

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

• Positive Sentiment: For the quarter ended September 30, Microchip reported $0.97 per share versus analysts’ $0.94 estimate, and revenue of $1.62 billion versus $1.61 billion expected. EPS was up from $0.35 a year earlier, marking a sixth consecutive earnings beat. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: The company forecast December-quarter revenue ranging from a 3% decline to 1% growth, with non-GAAP EPS of $0.87–$0.95. Reports characterized the guidance as below consensus, tempering the positive impact of the quarterly beat and pointing to limited near-term momentum. Article: Microchip December-Quarter Outlook

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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