TD Cowen Lowers Microchip Technology (NASDAQ:MCHP) Price Target to $90.00

Key Points

• TD Cowen cut its price target on Microchip Technology from $105 to $90 while keeping a hold rating, implying about 6.7% upside from the current share price.
• Despite the lower target, broader analyst sentiment remains constructive: Microchip has an average Moderate Buy rating and a consensus price target of about $100.10.
• The stock fell 4.8% to $84.34, even after the company recently beat quarterly earnings and revenue estimates and posted 35.1% year-over-year revenue growth.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective decreased by research analysts at TD Cowen from $105.00 to $90.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a "hold" rating on the semiconductor company's stock. TD Cowen's target price points to a potential upside of 6.71% from the stock's current price.

Other research analysts have also issued reports about the company. Rosenblatt Securities raised their price target on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Barclays increased their target price on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Wall Street Zen upgraded Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Cantor Fitzgerald restated an "overweight" rating and set a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. Finally, Weiss Ratings raised Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, June 4th. Four analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and an average target price of $100.10.

Microchip Technology Trading Down 4.8%

NASDAQ:MCHP traded down $4.25 on Monday, hitting $84.34. 3,176,812 shares of the stock were exchanged, compared to its average volume of 10,411,427. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The stock has a market capitalization of $45.80 billion, a price-to-earnings ratio of 402.00, a P/E/G ratio of 0.91 and a beta of 1.74. The company's 50-day moving average price is $93.64 and its 200 day moving average price is $79.92.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the firm posted $0.11 earnings per share. Microchip Technology's revenue for the quarter was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts forecast that Microchip Technology will post 2.66 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 3,667 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer owned 28,573 shares of the company's stock, valued at $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This represents a 3.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 553,302 shares of company stock valued at $49,673,635. Insiders own 1.94% of the company's stock.

Institutional Trading of Microchip Technology

A number of large investors have recently bought and sold shares of the business. EFG International AG bought a new position in Microchip Technology in the fourth quarter valued at approximately $29,000. Miller Capital Partners Inc. bought a new stake in shares of Microchip Technology during the fourth quarter worth $29,000. Reflection Asset Management bought a new stake in shares of Microchip Technology during the fourth quarter worth $33,000. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Microchip Technology during the fourth quarter worth $33,000. Finally, Caitong International Asset Management Co. Ltd raised its holdings in shares of Microchip Technology by 4,663.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 513 shares during the period. 91.51% of the stock is owned by institutional investors.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.

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