Cantor Fitzgerald Reiterates "Overweight" Rating for Microchip Technology (NASDAQ:MCHP)

Key Points

• Cantor Fitzgerald reiterated an “Overweight” rating on Microchip Technology and set a $125 price target, implying 68.26% upside from the prior close.
• Analyst sentiment remains favorable overall, with MarketBeat reporting a “Moderate Buy” consensus rating and an average price target of $99.76, despite price-target cuts from Wells Fargo and TD Cowen.
• Microchip beat its latest quarterly estimates, posting $0.57 in EPS versus $0.50 expected and $1.31 billion in revenue versus $1.26 billion expected; revenue rose 35.1% year over year.

Microchip Technology (NASDAQ:MCHP - Get Free Report)'s stock had its "overweight" rating restated by equities researchers at Cantor Fitzgerald in a note issued to investors on Monday,Benzinga reports. They currently have a $125.00 target price on the semiconductor company's stock. Cantor Fitzgerald's price target would indicate a potential upside of 68.26% from the company's previous close.

Other equities analysts have also issued reports about the company. Wells Fargo & Company reduced their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research report on Monday, July 20th. Wall Street Zen raised shares of Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Weiss Ratings lowered shares of Microchip Technology from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, July 24th. UBS Group reissued a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Finally, TD Cowen decreased their target price on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a research note on Monday, July 13th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $99.76.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $74.29 on Monday. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The company has a market cap of $40.34 billion, a PE ratio of 353.78, a P/E/G ratio of 0.75 and a beta of 1.74. The company's fifty day simple moving average is $88.87 and its 200-day simple moving average is $81.21. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm's quarterly revenue was up 35.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts anticipate that Microchip Technology will post 2.7 EPS for the current year.

Insiders Place Their Bets

In related news, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer owned 130,508 shares in the company, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Matthew W. Chapman sold 3,000 shares of the company's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the sale, the director directly owned 17,665 shares in the company, valued at $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 26,750 shares of company stock worth $2,543,170 in the last three months. 1.79% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new stake in Microchip Technology in the fourth quarter valued at $664,564,000. Barclays PLC boosted its holdings in shares of Microchip Technology by 66.5% during the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after acquiring an additional 5,590,210 shares during the period. Rafferty Asset Management LLC grew its position in shares of Microchip Technology by 41.0% during the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock worth $436,559,000 after acquiring an additional 1,803,945 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Microchip Technology by 255.7% during the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock worth $150,271,000 after acquiring an additional 1,534,829 shares during the last quarter. Finally, Worldquant Millennium Advisors LLC acquired a new stake in shares of Microchip Technology in the 2nd quarter worth about $101,359,000. Institutional investors own 91.51% of the company's stock.

About Microchip Technology

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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