Microchip Technology's (MCHP) "Overweight" Rating Reiterated at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reiterated its “Overweight” rating on Microchip Technology and maintained a $125 price target, implying 57.89% potential upside from the stock’s $79.17 opening price.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average target price of $98.85, although some firms recently lowered their targets.
• Microchip exceeded quarterly expectations, reporting $0.76 in earnings per share versus a $0.70 estimate and $1.48 billion in revenue, up 38% year over year.

Microchip Technology (NASDAQ:MCHP - Get Free Report)'s stock had its "overweight" rating reissued by equities researchers at Cantor Fitzgerald in a research note issued to investors on Monday,Benzinga reports. They currently have a $125.00 price objective on the semiconductor company's stock. Cantor Fitzgerald's price target points to a potential upside of 57.89% from the company's current price.

Several other research analysts also recently issued reports on the company. Truist Financial cut their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a research report on Friday, August 7th. Susquehanna upped their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a report on Friday, May 8th. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. UBS Group reissued a "buy" rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $120.00 price target on shares of Microchip Technology in a report on Friday, August 7th. Three 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. According to MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and a consensus target price of $98.85.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $79.17 on Monday. The company has a 50-day moving average of $85.72 and a two-hundred day moving average of $81.52. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The stock has a market cap of $42.99 billion, a PE ratio of 118.17, a price-to-earnings-growth ratio of 0.62 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results 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 analysts' expectations of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The company's revenue was up 38.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, research analysts anticipate that Microchip Technology will post 2.81 EPS for the current fiscal year.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, Director Matthew W. Chapman sold 3,000 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the transaction, the director owned 17,665 shares in the company, valued at $1,722,690.80. The trade was a 14.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company's stock, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,667 shares of company stock valued at $1,580,580 over the last three months. 1.79% of the stock is owned by company insiders.

Institutional Trading of Microchip Technology

A number of hedge funds have recently made changes to their positions in the company. EFG International AG acquired a new stake in Microchip Technology during the 4th quarter valued at $29,000. Miller Capital Partners Inc. acquired a new position in Microchip Technology in the 4th quarter worth $29,000. Continuum Advisory LLC purchased a new position in Microchip Technology in the 2nd quarter valued at about $30,000. Johnson Financial Group Inc. purchased a new position in Microchip Technology in the 2nd quarter valued at about $31,000. Finally, Reflection Asset Management acquired a new stake in shares of Microchip Technology during the fourth quarter valued at about $33,000. Hedge funds and other institutional investors 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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