Wells Fargo & Company Lowers Microchip Technology (NASDAQ:MCHP) Price Target to $88.00

Key Points

• Wells Fargo cut its price target on Microchip Technology from $95 to $88 while keeping an equal weight rating, implying about 8.7% upside from the current share price.
• Other analysts have also recently adjusted their views, with mixed but generally positive sentiment overall; Microchip currently has a Moderate Buy consensus and an average price target of $99.76.
• The company recently reported better-than-expected quarterly results, including EPS of $0.57 versus a $0.50 estimate and revenue of $1.31 billion, though insiders have sold shares in recent months.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target reduced by stock analysts at Wells Fargo & Company from $95.00 to $88.00 in a report issued on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the semiconductor company's stock. Wells Fargo & Company's price objective indicates a potential upside of 8.70% from the stock's current price.

MCHP has been the subject of a number of other research reports. TD Cowen dropped their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Monday, July 13th. Barclays increased their target price on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Susquehanna boosted their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Finally, Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Four research 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. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $99.76.

Microchip Technology Stock Performance

MCHP opened at $80.96 on Monday. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The business has a fifty day simple moving average of $92.15 and a 200-day simple moving average of $80.59. The firm has a market cap of $43.96 billion, a P/E ratio of 385.54, a P/E/G ratio of 0.82 and a beta of 1.74. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the business earned $0.11 EPS. The company's quarterly revenue 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 analysts expect that Microchip Technology will post 2.69 earnings per share for the current year.

Insider Activity

In other news, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares of the company's stock, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares of the company's stock, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 553,302 shares of company stock valued at $49,673,635 over the last quarter. Company insiders own 1.79% of the company's stock.

Institutional Trading of Microchip Technology

Institutional investors have recently bought and sold shares of the business. Resonant Capital Advisors LLC raised its holdings in shares of Microchip Technology by 0.9% during the first quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company's stock valued at $810,000 after acquiring an additional 118 shares in the last quarter. Apella Capital LLC lifted its stake in Microchip Technology by 4.8% in the second quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company's stock worth $225,000 after acquiring an additional 122 shares during the period. MCF Advisors LLC boosted its holdings in Microchip Technology by 25.8% in the fourth quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company's stock valued at $42,000 after acquiring an additional 135 shares in the last quarter. Gagnon Securities LLC increased its position in Microchip Technology by 0.5% during the 4th quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company's stock valued at $1,731,000 after purchasing an additional 137 shares during the period. Finally, Evelyn Partners Investment Management LLP increased its position in Microchip Technology by 1.5% during the 4th quarter. Evelyn Partners Investment Management LLP now owns 9,300 shares of the semiconductor company's stock valued at $593,000 after purchasing an additional 140 shares during the period. 91.51% of the stock is owned by hedge funds and other 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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