Barclays Raises Microchip Technology (NASDAQ:MCHP) Price Target to $105.00

Key Points

• Barclays raised its price target on Microchip Technology from $80 to $105 while keeping an equal weight rating, implying modest upside from current levels.
• Other analysts were mostly more bullish, with Needham, Wells Fargo, UBS and Wall Street Zen all lifting targets or ratings, while Weiss Ratings cut its view; the consensus rating remains Moderate Buy with an average target of $96.43.
• Microchip shares were down 0.7% on the day at $98.39, but the company recently posted strong quarterly results, beating EPS and revenue estimates and reporting 35.1% year-over-year revenue growth.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective raised by equities research analysts at Barclays from $80.00 to $105.00 in a report issued on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the semiconductor company's stock. Barclays's target price suggests a potential upside of 6.71% from the company's current price.

Several other equities research analysts have also commented on the stock. Needham & Company LLC increased their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the company a "buy" rating in a research note on Friday. Wells Fargo & Company upped their target price on Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a report on Friday. UBS Group increased their price target on Microchip Technology from $115.00 to $130.00 and gave the company a "buy" rating in a research report on Friday. Wall Street Zen upgraded Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday. Finally, Weiss Ratings cut Microchip Technology from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $96.43.

Microchip Technology Stock Down 0.7%

MCHP traded down $0.70 during mid-day trading on Monday, reaching $98.39. 972,553 shares of the stock were exchanged, compared to its average volume of 9,515,991. 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 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The stock has a market capitalization of $53.24 billion, a PE ratio of 471.20, a price-to-earnings-growth ratio of 1.32 and a beta of 1.75. The company has a 50 day moving average price of $73.27 and a two-hundred day moving average price of $69.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the company posted $0.11 earnings per share. The firm's revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, research analysts anticipate that Microchip Technology will post 2.14 EPS for the current year.

Insider Buying and Selling at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the sale, the chief executive officer owned 9,495,805 shares of the company's stock, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 526,552 shares of company stock worth $47,130,465. 1.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC purchased a new stake in shares of Microchip Technology during the 3rd quarter valued at approximately $25,000. Root Financial Partners LLC bought a new stake in Microchip Technology during the 3rd quarter valued at $28,000. EFG International AG purchased a new stake in shares of Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the fourth quarter worth $29,000. Finally, Quent Capital LLC bought a new position in shares of Microchip Technology in the third quarter worth $32,000. Institutional investors own 91.51% of the company's stock.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.

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