Microchip Technology (NASDAQ:MCHP) Posts Earnings Results

Microchip Technology (NASDAQ:MCHP - Get Free Report) announced its quarterly earnings data on Monday. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts' consensus estimates of $0.57, Briefing.com reports. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company's revenue was down 40.6% on a year-over-year basis. During the same period last year, the business earned $1.56 EPS. Microchip Technology updated its Q1 guidance to $0.48-0.56 EPS and its Q1 2025 guidance to 0.480-0.560 EPS.

Microchip Technology Price Performance

NASDAQ MCHP traded up $2.40 during trading hours on Monday, reaching $93.76. The company's stock had a trading volume of 7,233,477 shares, compared to its average volume of 5,624,807. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98. The stock has a market cap of $50.67 billion, a PE ratio of 21.91, a PEG ratio of 2.79 and a beta of 1.60. The company's 50-day moving average is $88.27 and its two-hundred day moving average is $85.25. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $94.63.

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be paid a $0.452 dividend. This is an increase from Microchip Technology's previous quarterly dividend of $0.45. This represents a $1.81 annualized dividend and a yield of 1.93%. Microchip Technology's dividend payout ratio (DPR) is presently 42.06%.

Insider Activity

In related news, Director Karlton D. Johnson sold 370 shares of the company's stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $84.00, for a total value of $31,080.00. Following the sale, the director now owns 1,789 shares of the company's stock, valued at approximately $150,276. The transaction was disclosed in a filing with the SEC, which is available through this link. In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares of the company's stock, valued at approximately $2,759,722.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Karlton D. Johnson sold 370 shares of the stock in a transaction on Tuesday, February 6th. The stock was sold at an average price of $84.00, for a total value of $31,080.00. Following the transaction, the director now directly owns 1,789 shares in the company, valued at approximately $150,276. The disclosure for this sale can be found here. Company insiders own 2.07% of the company's stock.

Wall Street Analysts Forecast Growth

MCHP has been the subject of several analyst reports. Wolfe Research raised Microchip Technology from a "peer perform" rating to an "outperform" rating and set a $105.00 price objective for the company in a research report on Thursday, January 18th. Truist Financial lowered their target price on shares of Microchip Technology from $97.00 to $93.00 and set a "buy" rating for the company in a report on Tuesday, January 9th. Evercore ISI began coverage on shares of Microchip Technology in a research report on Tuesday, April 16th. They issued an "outperform" rating and a $106.00 price target for the company. UBS Group decreased their price objective on shares of Microchip Technology from $105.00 to $95.00 and set a "buy" rating for the company in a research note on Friday, February 2nd. Finally, TD Cowen lifted their target price on Microchip Technology from $75.00 to $80.00 and gave the stock a "market perform" rating in a research report on Friday, February 2nd. Six analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $92.75.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells 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 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.