UBS Group Increases Microchip Technology (NASDAQ:MCHP) Price Target to $130.00

Key Points

• UBS Group raised its price target on Microchip Technology to $130 from $115 and kept a buy rating, implying about 31% upside from the current price.
• Other analysts have also turned more bullish, with several firms lifting targets in the wake of Microchip’s stronger-than-expected quarterly results. The stock’s consensus view remains Moderate Buy, with an average price target of $95.35.
• Microchip recently beat earnings and revenue estimates, with revenue up 35.1% year over year, and it also raised its quarterly dividend to 45.5 cents per share. Insider selling was disclosed, including a Rule 10b5-1 sale by CEO Steve Sanghi.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target lifted by equities research analysts at UBS Group from $115.00 to $130.00 in a research note issued on Friday,Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. UBS Group's price objective would suggest a potential upside of 31.19% from the company's current price.

A number of other research analysts have also recently commented on the company. Truist Financial raised their target price on Microchip Technology from $69.00 to $105.00 and gave the company a "hold" rating in a research note on Friday. KeyCorp reissued an "overweight" rating and issued a $85.00 target price on shares of Microchip Technology in a report on Friday, February 6th. Needham & Company LLC raised their price target on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday. BNP Paribas Exane upgraded Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 target price on the stock in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company lifted their target price on Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research report on Friday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $95.35.

Microchip Technology Price Performance

NASDAQ MCHP traded down $2.49 during trading on Friday, reaching $99.09. The company's stock had a trading volume of 18,852,453 shares, compared to its average volume of 9,619,642. The stock has a market capitalization of $53.62 billion, a PE ratio of -341.69, a P/E/G ratio of 1.38 and a beta of 1.75. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The firm has a fifty day moving average of $73.27 and a 200 day moving average of $69.20. Microchip Technology has a one year low of $48.52 and a one year high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The company's revenue was up 35.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Analysts expect that Microchip Technology will post 1.16 EPS for the current fiscal year.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer owned 9,385,834 shares in the company, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 526,552 shares of company stock worth $47,130,465. Corporate insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. boosted its stake in shares of Microchip Technology by 1.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 184,981 shares of the semiconductor company's stock worth $11,952,000 after acquiring an additional 2,905 shares in the last quarter. Oslo Pensjonsforsikring AS purchased a new position in Microchip Technology in the 1st quarter worth approximately $89,000. Andra AP fonden purchased a new position in Microchip Technology in the 1st quarter worth approximately $307,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Microchip Technology during the 1st quarter worth approximately $108,000. Finally, Meeder Advisory Services Inc. increased its holdings in shares of Microchip Technology by 11.9% during the 1st quarter. Meeder Advisory Services Inc. now owns 9,354 shares of the semiconductor company's stock worth $604,000 after buying an additional 995 shares during the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology News Roundup

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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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