Microchip Technology (NASDAQ:MCHP) Price Target Lowered to $95.00 at Citigroup

Key Points

• Citigroup lowered Microchip Technology’s price target to $95 from $113 while maintaining a “buy” rating, implying approximately 12.25% upside from the prior close.
• Microchip reported quarterly EPS of $0.76 and revenue of $1.48 billion, exceeding analyst expectations, with revenue up 38% year over year. Management’s next-quarter EPS guidance of $0.91–$0.95 also topped consensus estimates.
• Analyst sentiment remains positive overall, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $98.19, although some firms have recently reduced their targets and insiders have sold shares.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective cut by research analysts at Citigroup from $113.00 to $95.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Citigroup's price target points to a potential upside of 12.25% from the stock's previous close.

Several other equities analysts have also recently issued reports on MCHP. Barclays upped their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. Needham & Company LLC boosted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. JPMorgan Chase & Co. raised their target price on Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Finally, Wells Fargo & Company cut their target price on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a report on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, Microchip Technology has an average rating of "Moderate Buy" and an average target price of $98.19.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP traded up $10.28 during trading on Friday, hitting $84.64. 11,470,306 shares of the company were exchanged, compared to its average volume of 10,586,798. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a market capitalization of $45.96 billion, a P/E ratio of 403.05, a price-to-earnings-growth ratio of 0.78 and a beta of 1.76. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The business's 50 day moving average is $87.34 and its 200-day moving average is $81.28.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology's quarterly revenue was up 38.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities analysts forecast that Microchip Technology will post 2.7 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO James Eric Bjornholt sold 3,667 shares of the company's 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 sale, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 3,000 shares of Microchip Technology stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company's stock, valued at approximately $1,722,690.80. The trade was a 14.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 26,750 shares of company stock worth $2,543,170. Company insiders own 1.79% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wolverine Asset Management LLC raised its holdings in shares of Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock valued at $2,416,000 after buying an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group purchased a new stake in Microchip Technology in the fourth quarter worth approximately $6,691,000. Epoch Investment Partners Inc. grew its position 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 valued at $85,967,000 after acquiring an additional 191,339 shares during the last quarter. Peregrine Investment Management Inc. bought a new position in Microchip Technology during the first quarter valued at approximately $5,492,000. Finally, Norges Bank purchased a new position in shares of Microchip Technology during the fourth quarter worth approximately $664,564,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip's data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

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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