Microchip Technology (NASDAQ:MCHP) Given New $60.00 Price Target at TD Cowen

Key Points

• TD Cowen has reduced its price target for Microchip Technology from $75.00 to $60.00, indicating a potential downside of 9.39% from the stock's previous close, while maintaining a "hold" rating.
• Several analysts have varying price targets, with Citigroup raising its target to $90.00 and Rosenblatt Securities to $70.00, reflecting mixed sentiments among analysts regarding the stock's future performance.
• Microchip Technology reported a quarterly earnings per share of $0.27, surpassing analyst expectations, but its revenue declined by 13.3% year-over-year, highlighting ongoing challenges in the semiconductor market.

Microchip Technology (NASDAQ:MCHP - Free Report) had its price target lowered by TD Cowen from $75.00 to $60.00 in a research note published on Friday morning, Marketbeat Ratings reports. The brokerage currently has a hold rating on the semiconductor company's stock.

Several other brokerages have also weighed in on MCHP. Rosenblatt Securities increased their price objective on shares of Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a research report on Friday, May 30th. UBS Group raised their price target on shares of Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. The Goldman Sachs Group assumed coverage on shares of Microchip Technology in a research report on Thursday, July 10th. They set a "buy" rating and a $88.00 price target on the stock. Evercore ISI raised their price target on shares of Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a research report on Thursday, June 12th. Finally, Cantor Fitzgerald assumed coverage on shares of Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price target on the stock. Six research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $76.58.

Microchip Technology Stock Performance

Shares of MCHP traded down $4.35 during trading hours on Friday, hitting $61.87. The company had a trading volume of 20,069,831 shares, compared to its average volume of 8,773,815. The firm has a market cap of $33.39 billion, a price-to-earnings ratio of -181.97, a PEG ratio of 1.79 and a beta of 1.55. The business has a fifty day moving average of $69.65 and a 200-day moving average of $58.10. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $82.87. The company has a quick ratio of 1.47, a current ratio of 2.59 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share 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 6.33%. The company's revenue was down 13.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.53 earnings per share. Equities analysts anticipate that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Friday, August 22nd. Microchip Technology's dividend payout ratio is presently -18,200.00%.

Insider Transactions at Microchip Technology

In other Microchip Technology news, Director Karlton D. Johnson sold 494 shares of the stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction 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 filing with the SEC, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's 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 completion of the sale, the chief financial officer owned 34,313 shares in the company, valued at approximately $1,913,979.14. The trade was a 5.55% decrease in their ownership of the stock. 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

Hedge funds have recently made changes to their positions in the stock. Garde Capital Inc. acquired a new stake in shares of Microchip Technology in the 1st quarter valued at approximately $30,000. MCF Advisors LLC boosted its stake in shares of Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 321 shares in the last quarter. Carderock Capital Management Inc. acquired a new stake in shares of Microchip Technology in the 2nd quarter valued at approximately $39,000. WPG Advisers LLC acquired a new stake in shares of Microchip Technology in the 1st quarter valued at approximately $40,000. Finally, Painted Porch Advisors LLC acquired a new stake in shares of Microchip Technology in the 2nd quarter valued at approximately $40,000. 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.