Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Microchip Technology Incorporated has received an average rating of "Moderate Buy" from twenty analysts, with a 12-month target price averaging $76.58.
• Recent transactions by insiders include significant sales, with Director Matthew W. Chapman and CFO James Eric Bjornholt reducing their holdings in the company by 24.59% and 19.69% respectively.
• The company announced a quarterly dividend of $0.455 per share, representing an annualized payout of $1.82 and a yield of 2.8%.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty analysts that are covering the firm, Marketbeat reports. Six equities research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $76.5789.

Several research firms recently weighed in on MCHP. Morgan Stanley raised their price objective on Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a research note on Friday, May 9th. The Goldman Sachs Group initiated coverage on shares of Microchip Technology in a report on Thursday, July 10th. They set a "buy" rating and a $88.00 target price for the company. Wall Street Zen upgraded shares of Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. Truist Financial raised their target price on shares of Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a report on Wednesday, June 18th. Finally, Cantor Fitzgerald started coverage on Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price on the stock.

Insiders Place Their Bets

In other Microchip Technology news, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction on Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the sale, the director owned 30,665 shares in the company, valued at approximately $2,092,886.25. This represents a 24.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO James Eric Bjornholt sold 7,356 shares of the stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the sale, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Hedge funds have recently made changes to their positions in the business. MCF Advisors LLC boosted its holdings in shares of Microchip Technology by 211.2% during the second quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 321 shares during the last quarter. Carderock Capital Management Inc. acquired a new stake in shares of Microchip Technology during the second quarter worth $39,000. Painted Porch Advisors LLC acquired a new stake in shares of Microchip Technology during the second quarter worth $40,000. Fourth Dimension Wealth LLC boosted its holdings in shares of Microchip Technology by 98.7% during the second quarter. Fourth Dimension Wealth LLC now owns 600 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 298 shares during the last quarter. Finally, Garde Capital Inc. acquired a new stake in shares of Microchip Technology during the first quarter worth $30,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $65.00 on Monday. The company has a market cap of $35.08 billion, a price-to-earnings ratio of -191.18, a price-to-earnings-growth ratio of 1.88 and a beta of 1.56. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The stock has a 50 day simple moving average of $69.42 and a 200-day simple moving average of $59.32. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $82.65.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period last year, the business posted $0.53 EPS. Microchip Technology's quarterly revenue was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, equities analysts forecast that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, August 22nd. Microchip Technology's dividend payout ratio is -535.29%.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.

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