Needham & Company LLC Forecasts Strong Price Appreciation for Microchip Technology (NASDAQ:MCHP) Stock

Key Points

• Needham & Company LLC has raised its price target for Microchip Technology (NASDAQ:MCHP) stock from $66 to $77, suggesting a potential upside of 16.28%.
• Multiple analysts have given Microchip Technology a consensus rating of "Moderate Buy," with a target price of approximately $76.05, as thirteen have issued buy ratings.
• The company's recent quarterly earnings beat expectations, with a reported $0.27 EPS and revenues of $1.08 billion, although revenues were down 13.3% year-over-year.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target boosted by analysts at Needham & Company LLC from $66.00 to $77.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's price target points to a potential upside of 16.28% from the stock's current price.

Other analysts also recently issued research reports about the company. The Goldman Sachs Group began coverage on Microchip Technology in a research note on Thursday, July 10th. They set a "buy" rating and a $88.00 target price on the stock. Bank of America upgraded Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 price objective on the stock in a research report on Friday, May 9th. Cantor Fitzgerald began coverage on shares of Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price target on the stock. KeyCorp upped their target price on shares of Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Finally, Rosenblatt Securities lifted their price objective on Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a report on Friday, May 30th. Six analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $76.05.

Microchip Technology Trading Up 0.1%

MCHP opened at $66.22 on Friday. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.59 and a quick ratio of 1.47. The business has a 50 day simple moving average of $69.39 and a two-hundred day simple moving average of $58.02. The firm has a market capitalization of $35.74 billion, a price-to-earnings ratio of -6,622.00, a PEG ratio of 1.91 and a beta of 1.55. Microchip Technology has a one year low of $34.13 and a one year high of $82.87.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The firm had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.05 billion. Microchip Technology had a negative net margin of 0.01% and a positive return on equity of 8.55%. The business's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.53 earnings per share. Analysts predict that Microchip Technology will post 1.03 EPS for the current year.

Insider Buying and Selling

In other Microchip Technology news, Director Karlton D. Johnson sold 494 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total value of $29,980.86. Following the sale, the director directly owned 3,468 shares in the company, valued at $210,472.92. This represents a 12.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the sale, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

A number of large investors have recently modified their holdings of MCHP. MCF Advisors LLC lifted its position in shares of Microchip Technology by 211.2% during the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock worth $33,000 after buying an additional 321 shares during the last quarter. Carderock Capital Management Inc. purchased a new stake in shares of Microchip Technology during the second quarter worth $39,000. Painted Porch Advisors LLC purchased a new stake in shares of Microchip Technology in the second quarter worth $40,000. Fourth Dimension Wealth LLC grew its position in Microchip Technology by 98.7% in the second quarter. Fourth Dimension Wealth LLC now owns 600 shares of the semiconductor company's stock worth $42,000 after acquiring an additional 298 shares in the last quarter. Finally, Garde Capital Inc. bought a new position in Microchip Technology during the 1st quarter worth approximately $30,000. 91.51% of the stock is currently 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.

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