Microchip Technology (NASDAQ:MCHP) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Microchip Technology from “buy” to “hold.” Other analysts also cut price targets, although the consensus rating remains “Moderate Buy” with an average target of $91.64.
• For its latest quarter, Microchip reported EPS of $0.97 and revenue of $1.62 billion, beating estimates; revenue rose 42.2% year over year.
• Near-term guidance raised concerns: fiscal Q3 revenue is forecast to range from 3% below to 1% above Q2, with EPS of $0.87–$0.95, and the EPS midpoint was reported below consensus.

Microchip Technology (NASDAQ:MCHP - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities analysts have also recently commented on the stock. Susquehanna reduced their price objective on shares of Microchip Technology from $120.00 to $100.00 and set a "positive" rating for the company in a research report on Friday. UBS Group reiterated a "buy" rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. B. Riley Financial lowered their price target on Microchip Technology from $98.00 to $85.00 and set a "buy" rating for the company in a research report on Friday. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Wells Fargo & Company dropped their price objective on shares of Microchip Technology from $80.00 to $70.00 and set an "equal weight" rating for the company in a research note on Friday. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $91.64.

Microchip Technology Stock Performance

Microchip Technology stock opened at $58.35 on Friday. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The firm has a 50 day simple moving average of $74.85 and a 200-day simple moving average of $79.41. The stock has a market cap of $31.68 billion, a price-to-earnings ratio of 44.20, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84. 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 (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.03. The business had revenue of $1.62 billion for 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 was up 42.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.35 EPS. On average, analysts expect that Microchip Technology will post 3.20 EPS for the current year.

Insiders Place Their Bets

In related news, CFO James Bjornholt sold 4,112 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp grew its position in shares of Microchip Technology by 2.9% in the second 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 during the last quarter. Van ECK Associates Corp boosted its stake 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 valued at $750,102,000 after purchasing an additional 1,272,838 shares in the last quarter. Artemis Wealth Advisors LLC bought a new position in shares of Microchip Technology in the 2nd quarter worth approximately $541,413,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Microchip Technology in the 2nd quarter worth about $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in 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 purchasing an additional 962,362 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting 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

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