Microchip Technology Incorporated (NASDAQ:MCHP) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Microchip Technology has a consensus “Moderate Buy” rating from 24 analysts: 13 recommend buying, eight rate it a hold, and three issue strong-buy ratings. The average 12-month price target is $98.67, above the reported $71.58 share price.
• The company’s latest quarter exceeded expectations, with EPS of $0.76 versus a $0.70 consensus and revenue of $1.48 billion, up 38% year over year. Analysts expect full-year EPS of $3.16.
• Microchip paid a quarterly dividend of $0.455, equivalent to a 2.5% annualized yield, while institutional investors own 91.51% of the stock. However, the dividend payout ratio is elevated at 271.64%, and the CFO recently sold shares under a pre-arranged trading plan.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has received an average rating of "Moderate Buy" from the twenty-four brokerages that are covering the firm, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and three have given a strong buy recommendation to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $98.6667.

Several research analysts have weighed in on MCHP shares. TD Cowen lowered their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a report on Monday, July 13th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Microchip Technology in a report on Wednesday. Zacks Research downgraded shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. UBS Group restated a "buy" rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Finally, Truist Financial dropped their price target on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research report on Friday, August 7th.

Microchip Technology Stock Down 2.0%

Shares of NASDAQ:MCHP opened at $71.58 on Friday. The business's 50 day simple moving average is $78.57 and its two-hundred day simple moving average is $81.07. The firm has a market cap of $38.87 billion, a P/E ratio of 106.84, a PEG ratio of 0.51 and a beta of 1.75. 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.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released 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. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the company posted $0.27 earnings per share. The company's quarterly 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, research analysts forecast that Microchip Technology will post 3.16 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were paid a $0.455 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. Microchip Technology's dividend payout ratio is 271.64%.

Insider Buying and Selling at Microchip Technology

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 stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently bought and sold shares of the stock. Junto Capital Management LP purchased a new stake in Microchip Technology in the 2nd quarter valued at $38,537,000. Rench Wealth Management Inc. boosted its holdings in Microchip Technology by 0.6% during the 2nd quarter. Rench Wealth Management Inc. now owns 92,558 shares of the semiconductor company's stock worth $8,441,000 after acquiring an additional 512 shares during the last quarter. Sequoia Financial Advisors LLC boosted its holdings in Microchip Technology by 5.7% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 28,034 shares of the semiconductor company's stock worth $2,557,000 after acquiring an additional 1,507 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Microchip Technology in the 2nd quarter worth $301,000. Finally, Engineers Gate Manager LP grew its stake in shares of Microchip Technology by 480.1% in the 2nd quarter. Engineers Gate Manager LP now owns 32,308 shares of the semiconductor company's stock worth $2,946,000 after acquiring an additional 26,739 shares in the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Company Profile

Microchip Technology Incorporated NASDAQ: MCHP develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.