Microchip Technology Incorporated (MCHP) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts maintain a Moderate Buy consensus on Microchip Technology, with 13 buy, 3 strong-buy and 8 hold ratings. The average 12-month price target is $97.71, although some firms recently lowered their targets.
• Microchip’s latest quarterly results exceeded expectations, with $0.76 in EPS versus a $0.70 estimate and $1.48 billion in revenue. Revenue increased 38% year over year, while analysts expect $3.20 in EPS for the current fiscal year.
• The stock opened at $77.34 after a reported 4.7% decline and offers a quarterly dividend of $0.455, equivalent to a 2.4% annual yield. Institutional investors own approximately 91.5% of the company.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-four research firms that are presently covering the stock, MarketBeat Ratings reports. Eight investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and three have assigned a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $97.71.

MCHP has been the topic of a number of recent analyst reports. Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. TD Cowen lowered their target price on shares of Microchip Technology from $90.00 to $75.00 and set a "hold" rating for the company in a research note on Monday, October 19th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Microchip Technology in a research report on Wednesday, September 9th. Truist Financial decreased their price target 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 reissued a "buy" rating and issued a $120.00 price objective on shares of Microchip Technology in a research note on Friday, August 7th.

Microchip Technology Trading Down 4.7%

Shares of MCHP opened at $77.34 on Friday. 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 has a 52-week low of $48.52 and a 52-week high of $105.91. The firm has a market cap of $42.00 billion, a price-to-earnings ratio of 115.43, a PEG ratio of 0.56 and a beta of 1.77. The business's fifty day moving average is $75.26 and its 200-day moving average is $79.50.

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

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were paid a $0.4550 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.4%. Microchip Technology's payout ratio is 271.64%.

Insider Activity

In other news, CFO James Bjornholt sold 4,112 shares of the firm'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 sale, the chief financial officer owned 28,573 shares of the company's stock, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Compass Financial Management LLC raised its stake in shares of Microchip Technology by 12.0% during the third quarter. Compass Financial Management LLC now owns 1,794 shares of the semiconductor company's stock valued at $140,000 after acquiring an additional 192 shares during the last quarter. Rakuten Investment Management Inc. boosted its position in Microchip Technology by 13.7% during the 3rd quarter. Rakuten Investment Management Inc. now owns 227,846 shares of the semiconductor company's stock valued at $17,950,000 after acquiring an additional 27,376 shares in the last quarter. Provenance Wealth Advisors LLC grew its holdings in shares of Microchip Technology by 172,722.2% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 15,554 shares of the semiconductor company's stock worth $1,210,000 after acquiring an additional 15,545 shares during the period. Associated Banc Corp bought a new position in shares of Microchip Technology in the 3rd quarter worth approximately $3,008,000. Finally, Oregon Public Employees Retirement Fund raised its position in shares of Microchip Technology by 0.3% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 66,716 shares of the semiconductor company's stock worth $5,189,000 after acquiring an additional 230 shares in the last quarter. 91.51% of the stock is owned by 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.

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