Microchip Technology (NASDAQ:MCHP) Updates Q2 2027 Earnings Guidance

Key Points

• Microchip raised its Q2 2027 outlook, guiding for EPS of $0.91–$0.95 versus the $0.76 analyst consensus and revenue of approximately $1.6 billion versus expectations of $1.5 billion.
• Analyst sentiment remains favorable, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $99.76, although individual targets ranged from $90 to $120.
• Shares fell to $74.36 in Thursday trading, while institutional investors continued to own a large 91.51% stake; company insiders have sold $2.54 million worth of stock over the past three months.

Microchip Technology (NASDAQ:MCHP - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.910-0.950 for the period, compared to the consensus EPS estimate of 0.760. The company issued revenue guidance of $1.6 billion-$1.6 billion, compared to the consensus revenue estimate of $1.5 billion.

Analysts Set New Price Targets

MCHP has been the subject of several research reports. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Barclays boosted their price target on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. TD Cowen cut their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Monday, July 13th. UBS Group reiterated a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Finally, Rosenblatt Securities lifted their price objective on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, Microchip Technology has an average rating of "Moderate Buy" and a consensus target price of $99.76.

Microchip Technology Price Performance

NASDAQ MCHP traded down $3.43 during trading on Thursday, reaching $74.36. 15,775,966 shares of the company traded hands, compared to its average volume of 10,577,576. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The stock's 50 day moving average price is $87.77 and its two-hundred day moving average price is $81.28. The company has a market cap of $40.38 billion, a price-to-earnings ratio of 354.11, a P/E/G ratio of 0.81 and a beta of 1.76. 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 issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The business had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, analysts anticipate that Microchip Technology will post 2.7 EPS for the current year.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 3,667 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $93.44, for a total transaction of $467,200.00. Following the completion of the sale, the chief operating officer directly owned 135,508 shares in the company, valued at approximately $12,661,867.52. The trade was a 3.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 26,750 shares of company stock worth $2,543,170 over the last three months. 1.79% of the stock is currently owned by corporate insiders.

Institutional Trading of Microchip Technology

Several hedge funds have recently modified their holdings of the company. AQR Capital Management LLC boosted its stake in Microchip Technology by 51.3% in the first quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after purchasing an additional 5,835 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Microchip Technology by 101.8% in the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after buying an additional 616 shares during the last quarter. Cresset Asset Management LLC lifted its position in Microchip Technology by 5.4% during the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock worth $805,000 after buying an additional 589 shares in the last quarter. AXA S.A. grew its holdings in Microchip Technology by 21.3% during the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock worth $3,628,000 after acquiring an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its position in Microchip Technology by 1.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock valued at $17,348,000 after acquiring an additional 3,851 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

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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