Microchip Technology (NASDAQ:MCHP) Stock Price Expected to Rise, Raymond James Financial Analyst Says

Key Points

• Raymond James Financial has raised the price target for Microchip Technology from $65.00 to $75.00, maintaining a "strong-buy" rating, indicating a potential upside of 19.32%.
• Microchip Technology's recent earnings report revealed a quarterly EPS of $0.27, exceeding expectations, but revenue declined by 13.3% compared to the previous year.
• Currently, the stock has a consensus average rating of "Moderate Buy" and a target price of $76.58 based on multiple analysts' evaluations.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective increased by investment analysts at Raymond James Financial from $65.00 to $75.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "strong-buy" rating on the semiconductor company's stock. Raymond James Financial's target price indicates a potential upside of 21.22% from the company's previous close.

MCHP has been the topic of several other reports. B. Riley lifted their price objective on Microchip Technology from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Needham & Company LLC lifted their price objective on Microchip Technology from $66.00 to $77.00 and gave the stock a "buy" rating in a report on Friday. Bank of America upgraded Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 target price on the stock in a report on Friday, May 9th. Evercore ISI upped their price target on Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research report on Thursday, June 12th. Finally, Truist Financial upped their price target on Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research report on Wednesday, June 18th. Six research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $76.58.

Microchip Technology Stock Performance

MCHP traded down $4.35 on Friday, reaching $61.87. 20,069,831 shares of the stock were exchanged, compared to its average volume of 8,773,815. The company's 50-day moving average price is $69.65 and its 200 day moving average price is $58.10. Microchip Technology has a fifty-two week low of $34.13 and a fifty-two week high of $82.87. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.59 and a quick ratio of 1.47. The firm has a market capitalization of $33.39 billion, a PE ratio of -181.97, a PEG ratio of 1.79 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.05 billion. Microchip Technology had a positive return on equity of 6.33% and a negative net margin of 3.50%. The company's revenue was down 13.3% on a year-over-year basis. During the same quarter last year, the business posted $0.53 EPS. As a group, sell-side analysts forecast that Microchip Technology will post 1.03 EPS for the current fiscal year.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,015 shares of the company's stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer directly owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This represents a 5.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Karlton D. Johnson sold 494 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director directly owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This represents a 12.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by corporate insiders.

Institutional Trading of Microchip Technology

A number of hedge funds have recently bought and sold shares of the stock. MTM Investment Management LLC bought a new stake in Microchip Technology in the 2nd quarter valued at $84,000. Citizens Financial Group Inc. RI boosted its holdings in Microchip Technology by 56.3% in the 2nd quarter. Citizens Financial Group Inc. RI now owns 8,427 shares of the semiconductor company's stock valued at $593,000 after purchasing an additional 3,036 shares during the period. Avantax Advisory Services Inc. boosted its holdings in Microchip Technology by 122.3% in the 2nd quarter. Avantax Advisory Services Inc. now owns 167,989 shares of the semiconductor company's stock valued at $11,821,000 after purchasing an additional 92,412 shares during the period. Intech Investment Management LLC boosted its holdings in Microchip Technology by 48.4% in the 2nd quarter. Intech Investment Management LLC now owns 19,361 shares of the semiconductor company's stock valued at $1,362,000 after purchasing an additional 6,317 shares during the period. Finally, SG Capital Management LLC bought a new stake in Microchip Technology in the 2nd quarter valued at $8,937,000. 91.51% of the stock is 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.