Microchip Technology (NASDAQ:MCHP) Upgraded to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Microchip Technology from hold to buy, adding to a wave of generally bullish analyst sentiment on the stock.
• Other firms have recently raised their views and price targets, including UBS lifting its target to $130 and several analysts now keeping the stock at a Moderate Buy consensus with a $95.35 target.
• Microchip also reported better-than-expected earnings and revenue in its latest quarter, with sales up 35.1% year over year and guidance for Q1 2027 above current expectations; the CEO also sold shares in a pre-planned transaction.

Microchip Technology (NASDAQ:MCHP - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

A number of other analysts also recently commented on the stock. UBS Group boosted their target price on shares of Microchip Technology from $115.00 to $130.00 and gave the stock a "buy" rating in a report on Friday. Cantor Fitzgerald boosted their target price on shares of Microchip Technology from $85.00 to $100.00 and gave the stock an "overweight" rating in a report on Monday, February 2nd. Bank of America upgraded shares of Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 target price on the stock in a report on Wednesday, January 28th. Jefferies Financial Group reiterated a "hold" rating on shares of Microchip Technology in a report on Wednesday, February 4th. Finally, Wells Fargo & Company boosted their target price on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and a consensus target price of $95.35.

Microchip Technology Trading Down 2.5%

Shares of NASDAQ:MCHP opened at $99.09 on Friday. The company has a 50 day moving average of $73.27 and a 200-day moving average of $69.20. The firm has a market cap of $53.62 billion, a P/E ratio of 471.88, a P/E/G ratio of 1.36 and a beta of 1.75. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.76%. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the firm earned $0.11 EPS. The business's revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, analysts anticipate that Microchip Technology will post 2.14 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Steve Sanghi sold 76,469 shares of the business's stock in a transaction that occurred on 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 in the company, valued at $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 526,552 shares of company stock worth $47,130,465 in the last quarter. 1.94% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of large investors have recently made changes to their positions in MCHP. Winnow Wealth LLC acquired a new position in Microchip Technology in the 3rd quarter valued at approximately $25,000. Root Financial Partners LLC acquired a new position in Microchip Technology in the 3rd quarter valued at approximately $28,000. EFG International AG acquired a new position in Microchip Technology in the 4th quarter valued at approximately $29,000. Miller Capital Partners Inc. acquired a new position in Microchip Technology in the 4th quarter valued at approximately $29,000. Finally, Quent Capital LLC acquired a new position in Microchip Technology in the 3rd quarter valued at approximately $32,000. Institutional investors and hedge funds own 91.51% of the company's stock.

More Microchip Technology News

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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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