Q1 EPS Estimates for Microchip Technology Lifted by B. Riley

Key Points

• Analysts at B. Riley have significantly raised their Q1 2027 EPS estimate for Microchip Technology to $0.51, up from a previous estimate of $0.20, maintaining a "Buy" rating with a price target of $75.00.
• In their latest earnings report, Microchip Technology reported a quarterly EPS of $0.11, exceeding expectations, despite a 26.8% decline in revenue year-over-year.
• The stock has seen various institutional investors increasing their positions, with Vanguard raising its stake by 0.6% to over $3.35 billion in value, reflecting strong institutional confidence.

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - Equities research analysts at B. Riley raised their Q1 2027 EPS estimates for shares of Microchip Technology in a report released on Wednesday, July 23rd. B. Riley analyst C. Ellis now expects that the semiconductor company will post earnings per share of $0.51 for the quarter, up from their prior forecast of $0.20. B. Riley currently has a "Buy" rating and a $75.00 price target on the stock. The consensus estimate for Microchip Technology's current full-year earnings is $1.03 per share. B. Riley also issued estimates for Microchip Technology's Q2 2027 earnings at $0.59 EPS, Q3 2027 earnings at $0.54 EPS, Q4 2027 earnings at $0.58 EPS and FY2027 earnings at $2.23 EPS.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. The company had revenue of $970.50 million for the quarter, compared to analyst estimates of $962.86 million. Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. The company's quarterly revenue was down 26.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.57 earnings per share.

A number of other research firms also recently weighed in on MCHP. Raymond James Financial raised their price target on Microchip Technology from $60.00 to $65.00 and gave the company a "strong-buy" rating in a research note on Friday, May 9th. Rosenblatt Securities raised their target price on shares of Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, May 30th. Stifel Nicolaus increased their price target on shares of Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research note on Friday, July 18th. TD Cowen boosted their price objective on shares of Microchip Technology from $35.00 to $55.00 and gave the stock a "hold" rating in a research note on Friday, May 9th. Finally, Truist Financial lifted their price target on Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a report on Wednesday, June 18th. Six investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $75.70.

Microchip Technology Trading Down 3.5%

Shares of NASDAQ:MCHP opened at $67.81 on Friday. The company's 50-day moving average price is $67.67 and its two-hundred day moving average price is $57.29. Microchip Technology has a one year low of $34.13 and a one year high of $89.59. 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 stock has a market capitalization of $36.60 billion, a PE ratio of -6,781.00, a price-to-earnings-growth ratio of 1.99 and a beta of 1.52.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in MCHP. Vanguard Group Inc. increased its stake in shares of Microchip Technology by 0.6% in the first quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock valued at $3,354,940,000 after buying an additional 390,269 shares during the period. Invesco Ltd. increased its stake in shares of Microchip Technology by 63.0% in the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock valued at $808,787,000 after buying an additional 6,459,123 shares during the period. T. Rowe Price Investment Management Inc. raised its position in shares of Microchip Technology by 0.9% during the first quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company's stock worth $805,087,000 after acquiring an additional 152,434 shares during the last quarter. Boston Partners lifted its stake in shares of Microchip Technology by 35.3% in the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock worth $517,082,000 after acquiring an additional 2,795,650 shares during the period. Finally, Amundi increased its position in Microchip Technology by 22.7% during the 1st quarter. Amundi now owns 10,013,285 shares of the semiconductor company's stock valued at $484,743,000 after purchasing an additional 1,849,866 shares during the period. Institutional investors own 91.51% of the company's stock.

Insider Activity at Microchip Technology

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

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.68%. The ex-dividend date of this dividend was Thursday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is presently -18,200.00%.

Microchip Technology Company Profile

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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