Microchip Technology (NASDAQ:MCHP) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Microchip Technology from hold to strong-buy, adding to a generally positive analyst backdrop. The stock now has a consensus rating of Moderate Buy with a consensus price target of $97.52.
• Microchip beat earnings and revenue expectations in its latest quarter, reporting $0.57 EPS versus the $0.50 estimate and $1.31 billion in revenue versus $1.26 billion expected. Revenue rose 35.1% year over year, and the company issued Q1 2027 EPS guidance of $0.67 to $0.71.
• Shares were down 1.0% on the day despite the upbeat analyst news, opening at $96.71 after recently trading near their 52-week high of $105.91. The article also noted heavy institutional ownership, with hedge funds and other institutions holding 91.51% of the stock.

Microchip Technology (NASDAQ:MCHP - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Tuesday,Zacks.com reports.

Other analysts have also recently issued reports about the company. Cantor Fitzgerald reiterated an "overweight" rating and set a $125.00 price target on shares of Microchip Technology in a research report on Wednesday. Wells Fargo & Company boosted their price target on Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research report on Friday, May 8th. B. Riley Financial boosted their price target on Microchip Technology from $85.00 to $95.00 and gave the stock a "buy" rating in a research report on Monday, January 12th. Truist Financial boosted their price target on Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Finally, Bank of America upgraded Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price target for the company in a research report on Wednesday, January 28th. Four analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and a consensus target price of $97.52.

Microchip Technology Trading Down 1.0%

Shares of MCHP stock opened at $96.71 on Tuesday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The company has a market cap of $52.33 billion, a price-to-earnings ratio of 460.55, a PEG ratio of 1.20 and a beta of 1.75. The stock has a 50 day simple moving average of $75.13 and a 200-day simple moving average of $70.10. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the company posted $0.11 EPS. The business's quarterly revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts expect that Microchip Technology will post 2.21 EPS for the current fiscal year.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total value of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. This represents a 0.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 526,552 shares of company stock valued at $47,130,465. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Microchip Technology by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock valued at $4,683,824,000 after buying an additional 1,430,781 shares in the last quarter. State Street Corp grew its holdings in Microchip Technology by 2.8% in the 4th quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock valued at $1,839,153,000 after buying an additional 783,157 shares in the last quarter. Boston Partners grew its holdings in Microchip Technology by 9.5% in the 3rd quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock valued at $1,044,024,000 after buying an additional 1,406,885 shares in the last quarter. Geode Capital Management LLC grew its holdings in Microchip Technology by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock valued at $977,638,000 after buying an additional 213,188 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in Microchip Technology by 4.8% in the 4th quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock valued at $955,298,000 after buying an additional 684,561 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Microchip Technology

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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