Microchip Technology (NASDAQ:MCHP) Cut to "Hold" at Zacks Research

Key Points

• Microchip Technology has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research as of Monday.
• Despite the downgrade, several analysts have recently increased their target prices for the stock, with Goldman Sachs setting a target at $88.00 and Mizuho at $85.00.
• The company reported $1.08 billion in revenue for the last quarter, which was lower than the previous year but above analysts' estimates.

Microchip Technology (NASDAQ:MCHP - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

MCHP has been the topic of several other research reports. Truist Financial increased their target price on Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research note on Wednesday, June 18th. The Goldman Sachs Group started coverage on Microchip Technology in a research note on Thursday, July 10th. They issued a "buy" rating and a $88.00 target price on the stock. Mizuho increased their target price on Microchip Technology from $78.00 to $85.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Needham & Company LLC increased their target price on Microchip Technology from $66.00 to $77.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Bank of America raised Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 price target on the stock in a research report on Friday, May 9th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $76.58.

Microchip Technology Trading Up 0.4%

Shares of MCHP opened at $64.9850 on Monday. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $82.87. The firm has a market capitalization of $35.07 billion, a PE ratio of -190.47, a price-to-earnings-growth ratio of 1.91 and a beta of 1.55. The stock's fifty day simple moving average is $69.60 and its 200-day simple moving average is $58.50.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) 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 business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.05 billion. During the same quarter in the prior year, the firm posted $0.53 earnings per share. The firm's revenue for the quarter was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, research analysts predict that Microchip Technology will post 1.03 earnings per share for the current year.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total value of $112,396.70. Following the completion of the transaction, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its stake in Microchip Technology by 1.8% in the second quarter. Vanguard Group Inc. now owns 70,568,004 shares of the semiconductor company's stock valued at $4,965,870,000 after purchasing an additional 1,265,390 shares in the last quarter. State Street Corp boosted its stake in shares of Microchip Technology by 8.5% during the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company's stock worth $2,244,016,000 after acquiring an additional 2,489,258 shares during the period. Invesco Ltd. boosted its stake in shares of Microchip Technology by 10.4% during the 2nd quarter. Invesco Ltd. now owns 18,452,546 shares of the semiconductor company's stock worth $1,298,506,000 after acquiring an additional 1,745,515 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in shares of Microchip Technology by 0.9% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company's stock worth $805,087,000 after acquiring an additional 152,434 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Microchip Technology by 2.4% during the 2nd quarter. Geode Capital Management LLC now owns 14,842,341 shares of the semiconductor company's stock worth $1,040,544,000 after acquiring an additional 343,210 shares during the period. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

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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