Microchip Technology's (MCHP) Sell (D+) Rating Reaffirmed at Weiss Ratings

Key Points

• Weiss Ratings has reaffirmed a "Sell (D+)" rating for Microchip Technology (MCHP), indicating ongoing concerns regarding the stock's performance.
• The company's stock is currently trading at $66.18, down 1.1%, with a market capitalization of $35.71 billion and a debt-to-equity ratio of 0.80.
• Despite recent performance setbacks, Microchip Technology has seen significant insider selling, with key personnel reducing their positions, highlighting internal caution about future growth.

Microchip Technology (NASDAQ:MCHP - Get Free Report)'s stock had its "sell (d+)" rating reissued by investment analysts at Weiss Ratings in a report issued on Wednesday,Weiss Ratings reports.

MCHP has been the subject of several other reports. Cantor Fitzgerald initiated coverage on shares of Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price for the company. Citigroup lifted their price objective on Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Susquehanna lifted their price objective on Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. TD Cowen dropped their price objective on Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Finally, Stifel Nicolaus lifted their price objective on Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and a consensus target price of $75.75.

Microchip Technology Stock Down 1.1%

Shares of MCHP stock traded down $0.74 during trading hours on Wednesday, reaching $66.18. 285,897 shares of the stock were exchanged, compared to its average volume of 9,843,916. The business's fifty day moving average is $65.41 and its two-hundred day moving average is $60.86. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.31 and a quick ratio of 1.33. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $79.44. The firm has a market capitalization of $35.71 billion, a P/E ratio of -194.64, a P/E/G ratio of 1.86 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm's revenue was down 13.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.53 earnings per share. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, research analysts expect that Microchip Technology will post 1.03 EPS for the current fiscal year.

Insider Activity

In other news, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the transaction, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. This represents a 24.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 7,356 shares of the stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the sale, the chief financial officer owned 30,010 shares of the company's stock, valued at approximately $2,062,287.20. The trade was a 19.69% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Orbis Allan Gray Ltd bought a new position in shares of Microchip Technology in the 1st quarter worth $369,612,000. Norges Bank bought a new position in shares of Microchip Technology in the 2nd quarter worth $473,320,000. Invesco Ltd. lifted its holdings in Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after acquiring an additional 6,459,123 shares in the last quarter. Dodge & Cox lifted its holdings in Microchip Technology by 958.4% during the second quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company's stock worth $446,132,000 after acquiring an additional 5,740,827 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in Microchip Technology by 138.9% during the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock worth $427,681,000 after acquiring an additional 5,136,154 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

About Microchip Technology

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.