Microchip Technology Incorporated (NASDAQ:MCHP) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analyst sentiment is moderately positive: Twenty-four analysts collectively rate Microchip Technology “Moderate Buy,” with 13 buys, eight holds, and three strong buys. The average 12-month price target is $98.67.
• Recent results exceeded expectations: Microchip reported quarterly EPS of $0.76 versus the $0.70 consensus and revenue of $1.48 billion, up 38% year over year. Analysts expect full-year EPS of approximately $3.16.
• The company pays a dividend but has a high payout ratio: Its quarterly dividend is $0.455 per share, or $1.82 annually, producing a 2.2% yield; the payout ratio stands at 271.64%.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-four ratings firms that are currently covering the stock, Marketbeat.com reports. Eight equities research 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 twelve-month price target among brokers that have updated their coverage on the stock in the last year is $98.67.

MCHP has been the subject of a number of recent research reports. Cantor Fitzgerald restated an "overweight" rating on shares of Microchip Technology in a research note on Wednesday, September 9th. Weiss Ratings raised Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. BMO Capital Markets initiated coverage on Microchip Technology in a report on Friday, August 21st. They set an "outperform" rating and a $95.00 target price on the stock. Wells Fargo & Company reduced their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating for the company in a research report on Monday, July 20th. Finally, Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th.

Microchip Technology Price Performance

Shares of MCHP opened at $81.49 on Tuesday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The stock has a market capitalization of $44.25 billion, a P/E ratio of 121.63, a P/E/G ratio of 0.57 and a beta of 1.77. The company has a 50 day moving average of $75.77 and a 200-day moving average of $81.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates 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 for the quarter was up 38.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts forecast that Microchip Technology will post 3.16 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were issued a $0.4550 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology's dividend payout ratio is presently 271.64%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the firm's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares of the company's stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company's stock.

Institutional Trading of Microchip Technology

Large investors have recently added to or reduced their stakes in the company. TOP Private Wealth LLC. acquired a new position in shares of Microchip Technology during the 2nd quarter worth approximately $29,000. Continuum Advisory LLC bought a new position in Microchip Technology during the second quarter worth $30,000. Johnson Financial Group Inc. bought a new position in Microchip Technology during the second quarter worth $31,000. Rakuten Securities Inc. acquired a new position in shares of Microchip Technology in the second quarter valued at $34,000. Finally, PenderFund Capital Management Ltd. acquired a new position in shares of Microchip Technology in the second quarter valued at $36,000. Institutional investors and hedge funds own 91.51% of the company's stock.

About Microchip Technology

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company's product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.

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