Citigroup Boosts Microchip Technology (NASDAQ:MCHP) Price Target to $113.00

Key Points

• Citigroup raised its price target on Microchip Technology from $91 to $113 and kept a buy rating, implying about 14% upside from the current share price.
• Microchip recently reported better-than-expected quarterly results, with EPS and revenue both beating estimates and revenue jumping 35.1% year over year. Management also guided above consensus for the June quarter.
• Analyst sentiment remains generally positive, with several firms lifting price targets after earnings, though the stock traded down 2.5% on Friday and insiders have sold shares in recent months.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its target price boosted by research analysts at Citigroup from $91.00 to $113.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. Citigroup's target price would suggest a potential upside of 14.14% from the stock's current price.

MCHP has been the subject of a number of other reports. KeyCorp restated an "overweight" rating and issued a $85.00 price target on shares of Microchip Technology in a research note on Friday, February 6th. Wall Street Zen downgraded Microchip Technology from a "buy" rating to a "hold" rating in a research note on Saturday, April 25th. Wells Fargo & Company raised their price target on Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research note on Friday. Weiss Ratings upgraded Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, April 24th. Finally, JPMorgan Chase & Co. raised their price target on Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average price target of $93.83.

Microchip Technology Stock Down 2.5%

Shares of NASDAQ:MCHP traded down $2.58 during mid-day trading on Friday, reaching $99.00. 12,260,226 shares of the stock were exchanged, compared to its average volume of 9,530,403. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. The company has a market cap of $53.57 billion, a P/E ratio of -340.83, a P/E/G ratio of 1.38 and a beta of 1.75. Microchip Technology has a one year low of $48.52 and a one year high of $105.91. The stock's 50 day simple moving average is $73.27 and its 200-day simple moving average is $69.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.Microchip Technology's quarterly revenue was up 35.1% on a year-over-year basis. During the same period last year, the company earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts predict that Microchip Technology will post 1.16 EPS for the current year.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. The trade was a 4.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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. Insiders own 1.94% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Winnow Wealth LLC bought a new position in shares of Microchip Technology during the 3rd quarter worth approximately $25,000. Root Financial Partners LLC bought a new position in shares of Microchip Technology during the 3rd quarter worth approximately $28,000. EFG International AG bought a new position in shares of Microchip Technology during the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology during the 4th quarter worth approximately $29,000. Finally, Quent Capital LLC bought a new position in shares of Microchip Technology during the 3rd quarter worth approximately $32,000. 91.51% of the stock is currently owned by institutional investors.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Q4 earnings and revenue both beat estimates, signaling that demand is recovering faster than expected across Microchip’s key end markets. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: June-quarter guidance came in above consensus, with management pointing to stronger sales ahead and demand tied to industrial, automotive, and AI/data center customers. Microchip Tech forecasts quarterly revenue above estimates on strong chip demand
• Positive Sentiment: Several analysts raised price targets after the results, including JPMorgan, Susquehanna, Needham, Rosenblatt, and Wells Fargo, reinforcing bullish sentiment around the recovery. Microchip Technology Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: The company also increased its quarterly dividend, which may appeal to income-oriented investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share
• Neutral Sentiment: Microchip announced new Ethernet PHY products aimed at automotive and industrial networking, adding to its longer-term product pipeline. Next-Generation 100/1000BASE-T1 Single Pair Ethernet PHYs Integrate MACsec Security, Time Sensitive Networking and Functional Safety

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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