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

Key Points

• Microchip Technology has a consensus analyst rating of “Moderate Buy” from 25 brokerages, with 14 buy ratings and 4 strong buy ratings. The average 12-month price target is about $98.18.
• The company reported better-than-expected fiscal results for its latest quarter, posting EPS of $0.57 versus the expected $0.50 and revenue of $1.31 billion versus $1.26 billion. Revenue rose 35.1% year over year, and the company guided Q1 2027 EPS to $0.67-$0.71.
• Microchip also announced a quarterly dividend of $0.455 per share, or $1.82 annually for a 2.1% yield. However, insiders have been selling shares recently, including the director and CFO, with total insider sales reaching 553,302 shares over the last 90 days.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-five brokerages that are currently covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and four have given a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $98.1818.

Several research firms have recently weighed in on MCHP. Truist Financial lifted their target price on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and issued a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Citigroup lifted their price target on Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. Finally, Barclays lifted their price target on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a report on Monday, May 11th.

Microchip Technology Stock Down 6.6%

Shares of MCHP stock opened at $87.93 on Friday. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The stock has a market cap of $47.67 billion, a PE ratio of 418.73, a price-to-earnings-growth ratio of 0.90 and a beta of 1.73. The business's fifty day moving average is $93.01 and its 200-day moving average is $78.37. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm's revenue for the quarter was up 35.1% on a year-over-year basis. During the same period last year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts expect that Microchip Technology will post 2.66 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were given a dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.1%. Microchip Technology's payout ratio is presently 866.67%.

Insider Activity at Microchip Technology

In other news, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $95.48, for a total transaction of $954,800.00. Following the transaction, the director owned 20,665 shares in the company, valued at $1,973,094.20. This represents a 32.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares of the company's stock, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 553,302 shares of company stock worth $49,673,635 in the last 90 days. 1.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently modified their holdings of the business. EFG International AG acquired a new position in shares of Microchip Technology in the fourth quarter valued at $29,000. Miller Capital Partners Inc. acquired a new position in Microchip Technology during the fourth quarter worth $29,000. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Microchip Technology during the fourth quarter worth approximately $33,000. Reflection Asset Management acquired a new stake in shares of Microchip Technology in the fourth quarter valued at $33,000. Finally, Caitong International Asset Management Co. Ltd increased its position in Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 513 shares during the period. Institutional investors and hedge funds own 91.51% of the company's stock.

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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