Wells Fargo & Company Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Key Points

• Wells Fargo lowered Microchip Technology’s price target to $80 from $88 while maintaining an “equal weight” rating, implying roughly 5% upside from the current price.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and average price target of $97.57, despite recent downgrades from Zacks and UBS.
• Microchip shares rose 2.4% to $76.19; the company recently beat quarterly earnings and revenue expectations, reporting $0.76 EPS and $1.48 billion in revenue, up 38% year over year.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its target price lowered by Wells Fargo & Company from $88.00 to $80.00 in a note issued to investors on Tuesday, Benzinga reports. The firm presently has an "equal weight" rating on the semiconductor company's stock. Wells Fargo & Company's price objective indicates a potential upside of 5.00% from the stock's current price.

A number of other analysts have also weighed in on MCHP. Zacks Research lowered shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th. BMO Capital Markets began coverage on shares of Microchip Technology in a research report on Friday, August 21st. They set an "outperform" rating and a $95.00 target price on the stock. UBS Group restated 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. Cantor Fitzgerald restated an "overweight" rating on shares of Microchip Technology in a report on Wednesday, September 9th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $120.00 price target on shares of Microchip Technology in a research report on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average price target of $97.57.

Microchip Technology Trading Up 2.4%

MCHP traded up $1.76 during trading on Tuesday, hitting $76.19. 954,439 shares of the stock were exchanged, compared to its average volume of 10,089,991. The firm has a 50 day simple moving average of $75.41 and a 200 day simple moving average of $82.66. The firm has a market cap of $41.37 billion, a price-to-earnings ratio of 113.25, a P/E/G ratio of 0.51 and a beta of 1.77. 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 quick ratio of 1.11 and a current ratio of 1.92.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same period in the previous year, the company posted $0.27 EPS. Microchip Technology's 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. As a group, equities analysts expect that Microchip Technology will post 3.20 EPS for the current year.

Insider Activity at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction 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. The trade was a 12.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microchip Technology

Institutional investors have recently bought and sold shares of the company. State Street Corp raised 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 worth $2,631,273,000 after purchasing an additional 821,147 shares during the last quarter. Van ECK Associates Corp lifted its position in Microchip Technology by 18.3% during the second 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 during the period. Artemis Wealth Advisors LLC acquired a new position in Microchip Technology during the second quarter valued at $541,413,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Microchip Technology in the second quarter valued at $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Microchip Technology by 23.5% in 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 during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.

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