Microchip Technology Incorporated (NASDAQ:MCHP) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Microchip Technology has a consensus analyst rating of “Moderate Buy”, with 15 buy ratings, 3 strong buy ratings, and 8 holds across 26 brokerages. The average 1-year price target is about $95.35.
• The company reported strong fiscal Q4 results, beating estimates on both earnings and revenue, while bookings improved and revenue rose 35.1% year over year. Management also set Q1 2027 EPS guidance at 0.670–0.710.
• Microchip also announced a higher quarterly dividend of $0.455 per share, and several analysts raised their price targets after the earnings update, suggesting growing confidence in the company’s recovery.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-six brokerages that are covering the firm, Marketbeat.com reports. Eight analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and three have given a strong buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $95.3478.

Several equities research analysts have recently weighed in on MCHP shares. KeyCorp reiterated an "overweight" rating and set a $85.00 price target on shares of Microchip Technology in a research report on Friday, February 6th. Jefferies Financial Group reiterated a "hold" rating on shares of Microchip Technology in a research report on Wednesday, February 4th. Stifel Nicolaus set a $90.00 price target on Microchip Technology in a research report on Friday, February 6th. Barclays started coverage on Microchip Technology in a research report on Thursday, February 12th. They set an "equal weight" rating and a $80.00 price target on the stock. Finally, Bank of America upgraded Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price target on the stock in a research report on Wednesday, January 28th.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the sale, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 526,552 shares of company stock worth $47,130,465 in the last quarter. Corporate insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wolverine Asset Management LLC increased its position in shares of Microchip Technology by 3,833.7% in the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock worth $2,416,000 after purchasing an additional 36,957 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Microchip Technology by 2.1% in the third quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company's stock worth $4,628,692,000 after purchasing an additional 1,507,554 shares during the last quarter. PNC Financial Services Group Inc. grew its position in Microchip Technology by 13.5% during the third quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company's stock valued at $13,447,000 after acquiring an additional 24,963 shares during the last quarter. Natixis Advisors LLC grew its position in Microchip Technology by 18.7% during the third quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company's stock valued at $79,184,000 after acquiring an additional 194,048 shares during the last quarter. Finally, CIBC Private Wealth Group LLC grew its position in Microchip Technology by 18.2% during the third quarter. CIBC Private Wealth Group LLC now owns 1,470,059 shares of the semiconductor company's stock valued at $94,407,000 after acquiring an additional 226,078 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

Microchip Technology News Roundup

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

Microchip Technology Price Performance

Microchip Technology stock opened at $99.09 on Friday. The firm has a market capitalization of $53.62 billion, a P/E ratio of 471.88, a PEG ratio of 1.36 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 company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The business has a fifty day moving average price of $73.27 and a 200-day moving average price of $69.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a return on equity of 10.76% and a net margin of 4.88%.The firm's revenue for the quarter was up 35.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts forecast that Microchip Technology will post 2.14 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be given a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 1.8%. Microchip Technology's dividend payout ratio is currently 866.67%.

About Microchip Technology

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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