Microchip Technology Incorporated (NASDAQ:MCHP) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus: Of 23 analysts, 13 recommend buying, seven rate the stock a hold and three issue a strong buy; the average 12-month price target is $98.85, though several firms recently lowered their targets.
• Microchip exceeded quarterly expectations: The company reported $0.76 in EPS versus the $0.70 consensus and $1.48 billion in revenue, up 38% year over year. Shares opened at $79.17, below the average analyst target.
• Investors receive a quarterly dividend: Microchip declared a $0.455-per-share dividend, equivalent to $1.82 annually and a 2.3% yield, payable September 9 to shareholders of record August 24.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-three research firms that are covering the company, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and three have given a strong buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $98.85.

A number of analysts recently weighed in on MCHP shares. TD Cowen decreased their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Truist Financial lowered 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 report on Friday, August 7th. Citigroup reduced 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 report on Friday, August 7th. Wells Fargo & Company decreased their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research note on Monday, July 20th. Finally, Needham & Company LLC upped their price target on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $79.17 on Monday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The stock has a market capitalization of $42.99 billion, a P/E ratio of 118.17, a P/E/G ratio of 0.62 and a beta of 1.76. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The firm has a 50-day moving average price of $85.72 and a 200 day moving average price of $81.52.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the previous year, the company earned $0.27 EPS. The firm's revenue for the quarter was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities research analysts expect that Microchip Technology will post 2.81 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be given a $0.455 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. Microchip Technology's payout ratio is currently 271.64%.

Insider Activity at Microchip Technology

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the transaction, the chief financial officer 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 16,667 shares of company stock valued at $1,580,580. Insiders own 1.79% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. Wolverine Asset Management LLC grew its holdings in 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 valued at $2,416,000 after purchasing an additional 36,957 shares during the period. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group purchased a new position in Microchip Technology during the fourth quarter worth approximately $6,691,000. Epoch Investment Partners Inc. raised its stake in Microchip Technology by 16.5% during the fourth quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company's stock worth $85,967,000 after purchasing an additional 191,339 shares during the period. Peregrine Investment Management Inc. acquired a new position in shares of Microchip Technology in the 1st quarter valued at $5,492,000. Finally, Norges Bank acquired a new position in shares of Microchip Technology in the 4th quarter valued at $664,564,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Company Profile

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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