Microchip Technology (NASDAQ:MCHP) Earns Equal Weight Rating from Analysts at Wells Fargo & Company

Key Points

• Wells Fargo & Company has initiated coverage on Microchip Technology (NASDAQ:MCHP) with an "equal weight" rating and a price target of $60.00, suggesting a potential downside of 7.26% from its previous close.
• Other analysts have mixed views: Rosenblatt Securities upgraded it to a "buy" with a target of $70.00, while Zacks Research downgraded it to "hold."
• Microchip reported a quarter EPS of $0.27, exceeding analyst expectations, but its revenue decreased by 13.3% year-over-year.

Equities research analysts at Wells Fargo & Company initiated coverage on shares of Microchip Technology (NASDAQ:MCHP - Get Free Report) in a research note issued to investors on Monday,Benzinga reports. The brokerage set an "equal weight" rating and a $60.00 price target on the semiconductor company's stock. Wells Fargo & Company's target price suggests a potential downside of 7.26% from the company's previous close.

MCHP has been the subject of a number of other research reports. Rosenblatt Securities lifted their target price on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, May 30th. Zacks Research downgraded shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 18th. Mizuho lifted their price target on shares of Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 8th. Susquehanna lifted their price target on shares of Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research note on Tuesday, July 22nd. Finally, KeyCorp lifted their target price on shares of Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $75.75.

Microchip Technology Trading Down 0.5%

NASDAQ:MCHP opened at $64.70 on Monday. Microchip Technology has a 52 week low of $34.13 and a 52 week high of $81.64. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The company's 50 day moving average price is $68.12 and its 200-day moving average price is $59.68. The stock has a market cap of $34.92 billion, a price-to-earnings ratio of -190.29, a PEG ratio of 1.85 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same quarter in the previous year, the firm posted $0.53 EPS. The firm's 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 research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO James Eric Bjornholt sold 7,356 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the transaction, the chief financial officer directly owned 30,010 shares in the company, valued at approximately $2,062,287.20. This represents a 19.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the transaction, the director owned 30,665 shares in the company, valued at $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

Hedge funds have recently added to or reduced their stakes in the stock. MCF Advisors LLC grew its stake in Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 321 shares in the last quarter. Carderock Capital Management Inc. purchased a new stake in Microchip Technology during the second quarter valued at approximately $39,000. Painted Porch Advisors LLC purchased a new stake in Microchip Technology during the second quarter valued at approximately $40,000. Fourth Dimension Wealth LLC raised its holdings in shares of Microchip Technology by 98.7% in the second quarter. Fourth Dimension Wealth LLC now owns 600 shares of the semiconductor company's stock worth $42,000 after buying an additional 298 shares during the last quarter. Finally, Garde Capital Inc. purchased a new position in shares of Microchip Technology in the first quarter worth $30,000. 91.51% of the stock is currently owned by institutional investors.

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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