Microchip Technology (NASDAQ:MCHP) Given "Overweight" Rating at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reiterated its Overweight rating on Microchip Technology and kept a $125 price target, implying about 27.9% upside from the current share price.
• Other analysts have also been positive, with recent target increases from firms including UBS, Needham, and Wells Fargo; the broader consensus remains a Moderate Buy with an average price target of $97.52.
• Microchip recently beat quarterly estimates, reporting EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% year over year.

Microchip Technology (NASDAQ:MCHP - Get Free Report)'s stock had its "overweight" rating restated by Cantor Fitzgerald in a note issued to investors on Wednesday,Benzinga reports. They currently have a $125.00 price target on the semiconductor company's stock. Cantor Fitzgerald's price target points to a potential upside of 27.94% from the company's current price.

Several other equities research analysts have also recently weighed in on the stock. UBS Group increased their price target on shares of Microchip Technology from $115.00 to $130.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Mizuho boosted their price objective on shares of Microchip Technology from $83.00 to $90.00 and gave the company an "outperform" rating in a research report on Friday, February 6th. Wells Fargo & Company upped their price objective on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Needham & Company LLC increased their target price on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, Argus raised Microchip Technology to a "strong-buy" rating in a research note on Monday, February 9th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Microchip Technology has an average rating of "Moderate Buy" and a consensus price target of $97.52.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $97.70 on Wednesday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology has a one year low of $48.52 and a one year high of $105.91. The business's 50 day simple moving average is $74.68 and its two-hundred day simple moving average is $69.88. The stock has a market capitalization of $52.87 billion, a P/E ratio of 465.26, a price-to-earnings-growth ratio of 1.26 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the firm posted $0.11 earnings per share. The business's quarterly revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Analysts forecast that Microchip Technology will post 2.14 EPS for the current year.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of Microchip Technology stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the sale, the chief executive officer owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. The trade was a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 526,552 shares of company stock valued at $47,130,465. Company insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Microchip Technology during the 4th quarter worth approximately $664,564,000. Barclays PLC boosted its position in shares of Microchip Technology by 66.5% during the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after purchasing an additional 5,590,210 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC boosted its position in shares of Microchip Technology by 25.7% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after purchasing an additional 2,257,932 shares in the last quarter. Holocene Advisors LP grew its stake in Microchip Technology by 77.0% in the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock worth $302,447,000 after purchasing an additional 2,049,249 shares during the period. Finally, Rafferty Asset Management LLC grew its stake in Microchip Technology by 41.0% in the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock worth $436,559,000 after purchasing an additional 1,803,945 shares during the period. 91.51% of the stock is owned by institutional investors.

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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