Zacks Research Issues Negative Outlook for MCHP Earnings

Key Points

• Zacks Research has issued a negative outlook for Microchip Technology, lowering its Q1 2027 EPS estimate from $0.37 to $0.36, while maintaining a "Hold" rating on the stock.
• For the company's most recent quarter, Microchip reported $0.27 EPS, surpassing estimates, but experienced a 13.3% decline in revenue year-over-year.
• Despite recent analyst upgrades on price targets, the stock has a moderate consensus rating of "Moderate Buy" with a target of $75.75, while a significant portion of shares is held by institutional investors.

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - Analysts at Zacks Research reduced their Q1 2027 EPS estimates for Microchip Technology in a research report issued to clients and investors on Monday, October 13th. Zacks Research analyst Team now anticipates that the semiconductor company will post earnings of $0.36 per share for the quarter, down from their previous forecast of $0.37. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Microchip Technology's current full-year earnings is $1.03 per share. Zacks Research also issued estimates for Microchip Technology's Q3 2027 earnings at $0.60 EPS, FY2027 earnings at $1.87 EPS and Q2 2028 earnings at $0.62 EPS.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. During the same period in the previous year, the company earned $0.53 earnings per share. The company's quarterly revenue was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS.

Several other equities analysts also recently commented on the stock. KeyCorp upped their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Piper Sandler upped their price objective on shares of Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Susquehanna upped their price objective on shares of Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Truist Financial upped their price objective on shares of Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a research report on Wednesday, June 18th. Finally, Raymond James Financial upped their price objective on shares of Microchip Technology from $65.00 to $75.00 and gave the stock a "strong-buy" rating in a research report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $75.75.

Microchip Technology Trading Up 0.3%

MCHP stock opened at $64.60 on Wednesday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The company's 50-day simple moving average is $65.16 and its 200 day simple moving average is $61.27. Microchip Technology has a 52 week low of $34.13 and a 52 week high of $79.44. The company has a market capitalization of $34.86 billion, a PE ratio of -190.00, a price-to-earnings-growth ratio of 1.84 and a beta of 1.55.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Garde Capital Inc. bought a new stake in Microchip Technology during the 1st quarter valued at approximately $30,000. MCF Advisors LLC raised its position 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 worth $33,000 after acquiring an additional 321 shares in the last quarter. Carderock Capital Management Inc. bought a new position in shares of Microchip Technology in the 2nd quarter worth $39,000. WPG Advisers LLC bought a new position in shares of Microchip Technology in the 1st quarter worth $40,000. Finally, Painted Porch Advisors LLC bought a new position in shares of Microchip Technology in the 2nd quarter worth $40,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the sale, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Matthew W. Chapman sold 10,000 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.25, for a total value of $682,500.00. Following the completion of the sale, the director owned 30,665 shares of the company's stock, valued at $2,092,886.25. The trade was a 24.59% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by insiders.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, August 22nd. Microchip Technology's payout ratio is currently -535.29%.

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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