KeyCorp Research Analysts Boost Earnings Estimates for MCHP

Key Points

• KeyCorp raised its Q3 2027 EPS estimate for Microchip Technology to $0.94 from $0.81 and projected $3.41 EPS for FY2027 and $4.54 for FY2028.
• Microchip recently beat quarterly expectations, reporting $0.76 EPS versus a $0.70 consensus and $1.48 billion in revenue, up 38% year over year. The company guided Q2 2027 EPS to $0.91–$0.95.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus rating and an average price target of $98.67, compared with the stock’s reported $73.85 opening price.

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - Analysts at KeyCorp lifted their Q3 2027 earnings per share estimates for Microchip Technology in a research report issued to clients and investors on Wednesday, October 14th. KeyCorp analyst J. Vinh now expects that the semiconductor company will earn $0.94 per share for the quarter, up from their prior estimate of $0.81. The consensus estimate for Microchip Technology's current full-year earnings is $3.20 per share. KeyCorp also issued estimates for Microchip Technology's FY2027 earnings at $3.41 EPS, Q2 2028 earnings at $1.16 EPS, Q3 2028 earnings at $1.14 EPS, Q4 2028 earnings at $1.21 EPS and FY2028 earnings at $4.54 EPS.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping 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 for the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business posted $0.27 earnings per share. The company's revenue for the quarter was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS.

Several other analysts also recently weighed in on MCHP. BMO Capital Markets assumed coverage on Microchip Technology in a research report on Friday, August 21st. They set an "outperform" rating and a $95.00 target price for the company. Rosenblatt Securities reissued a "buy" rating and issued a $120.00 price objective on shares of Microchip Technology in a research report on Friday, August 7th. TD Cowen dropped their target price on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Citigroup decreased their price target on shares of Microchip Technology from $113.00 to $95.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Finally, Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, Microchip Technology presently has an average rating of "Moderate Buy" and a consensus target price of $98.67.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $73.85 on Monday. The stock's fifty day moving average is $75.54 and its two-hundred day moving average is $82.59. The company has a market capitalization of $40.10 billion, a PE ratio of 110.23, a price-to-earnings-growth ratio of 0.51 and a beta of 1.77. 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 52 week low of $48.52 and a 52 week high of $105.91.

Hedge Funds Weigh In On Microchip Technology

Large investors have recently bought and sold shares of the business. State Street Corp increased its holdings in shares of Microchip Technology by 2.9% during the second quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company's stock valued at $2,631,273,000 after acquiring an additional 821,147 shares in the last quarter. Van ECK Associates Corp raised its position in shares of Microchip Technology by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company's stock valued at $750,102,000 after purchasing an additional 1,272,838 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Microchip Technology in the 2nd quarter worth approximately $537,423,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Microchip Technology by 23.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company's stock worth $461,520,000 after purchasing an additional 962,362 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Microchip Technology in the 2nd quarter worth approximately $312,597,000. Institutional investors own 91.51% of the company's stock.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the company'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 value 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 approximately $2,152,118.36. This represents a 12.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were given a $0.4550 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology's dividend payout ratio is presently 271.64%.

Microchip Technology Company Profile

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.

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.