TD Cowen Has Lowered Expectations for Microchip Technology (NASDAQ:MCHP) Stock Price

Key Points

• TD Cowen lowered Microchip Technology’s price target from $90 to $75 and maintained a “hold” rating, implying roughly 0.8% upside from the stock’s $74.41 price.
• Analyst sentiment remains positive overall, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $97.95, despite several recent target reductions.
• Microchip recently exceeded quarterly expectations, reporting $0.76 in EPS and $1.48 billion in revenue, with revenue up 38% year over year; institutional investors own 91.51% of the stock.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target reduced by research analysts at TD Cowen from $90.00 to $75.00 in a report released on Monday, Benzinga reports. The firm currently has a "hold" rating on the semiconductor company's stock. TD Cowen's price target would indicate a potential upside of 0.80% from the company's current price.

A number of other research analysts have also recently commented on MCHP. Citigroup reduced their target price on Microchip Technology from $113.00 to $95.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. UBS Group reaffirmed 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. BMO Capital Markets began coverage on Microchip Technology in a report on Friday, August 21st. They issued an "outperform" rating and a $95.00 price objective for the company. Truist Financial cut their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Friday, August 7th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $120.00 price objective on shares of Microchip Technology in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $97.95.

Microchip Technology Price Performance

MCHP stock opened at $74.41 on Monday. The firm has a 50 day simple moving average of $75.41 and a two-hundred day simple moving average of $82.66. The stock has a market cap of $40.40 billion, a PE ratio of 45.03, a P/E/G ratio of 0.51 and a beta of 1.77. Microchip Technology has a one year low of $48.52 and a one 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.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter last year, the company posted $0.27 EPS. The business's quarterly revenue was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, analysts predict that Microchip Technology will post 3.20 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO James Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by insiders.

Institutional Trading of Microchip Technology

Several institutional investors have recently added to or reduced their stakes in MCHP. State Street Corp lifted its holdings in shares of Microchip Technology by 2.9% during 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 grew 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 worth $750,102,000 after buying an additional 1,272,838 shares during the last quarter. Artemis Wealth Advisors LLC purchased a new stake in shares of Microchip Technology in the 2nd quarter worth approximately $541,413,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Microchip Technology in the 2nd quarter worth approximately $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Microchip Technology by 23.5% during the 2nd 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 in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Microchip Technology

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.