Zacks Research Issues Optimistic Outlook for MCHP Earnings

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - Investment analysts at Zacks Research boosted their Q2 2026 EPS estimates for Microchip Technology in a report issued on Monday, July 21st. Zacks Research analyst R. Department now expects that the semiconductor company will earn $0.20 per share for the quarter, up from their prior forecast of $0.18. 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 Q1 2027 earnings at $0.33 EPS, Q2 2027 earnings at $0.43 EPS, Q3 2027 earnings at $0.55 EPS, Q4 2027 earnings at $0.59 EPS, FY2027 earnings at $1.90 EPS, Q1 2028 earnings at $0.52 EPS and FY2028 earnings at $2.64 EPS.

MCHP has been the topic of a number of other reports. Stifel Nicolaus raised their price target on shares of Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Cantor Fitzgerald assumed coverage on shares of Microchip Technology in a research note on Wednesday, June 18th. They issued a "neutral" rating and a $70.00 price target on the stock. Citigroup raised their price target on shares of Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a research note on Monday, July 7th. The Goldman Sachs Group assumed coverage on shares of Microchip Technology in a research note on Thursday, July 10th. They issued a "buy" rating and a $88.00 price target on the stock. Finally, Mizuho raised their price objective on shares of Microchip Technology from $78.00 to $85.00 and gave the company an "outperform" rating in a report on Tuesday, July 8th. Six analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average target price of $75.70.

Microchip Technology Price Performance

Shares of MCHP traded up $1.40 during mid-day trading on Wednesday, reaching $69.21. The company had a trading volume of 8,352,945 shares, compared to its average volume of 7,450,901. The company's 50 day simple moving average is $67.83 and its 200 day simple moving average is $57.38. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $89.59. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.47 and a current ratio of 2.59. The company has a market capitalization of $37.35 billion, a price-to-earnings ratio of -6,921.00, a P/E/G ratio of 1.92 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.10 by $0.01. The firm had revenue of $970.50 million for the quarter, compared to the consensus estimate of $962.86 million. Microchip Technology had a negative net margin of 0.01% and a positive return on equity of 8.55%. The business's revenue for the quarter was down 26.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.57 earnings per share.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.63%. The ex-dividend date of this dividend was Thursday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is -18,200.00%.

Insider Activity at Microchip Technology

In other news, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director owned 3,468 shares of the company's stock, valued at $210,472.92. This trade represents a 12.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the sale, the chief financial officer directly owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Institutional Trading of Microchip Technology

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Microchip Technology by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 68,912,345 shares of the semiconductor company's stock valued at $3,952,123,000 after purchasing an additional 569,699 shares during the period. Franklin Resources Inc. grew its position in Microchip Technology by 90.0% in the 4th quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company's stock valued at $364,792,000 after purchasing an additional 3,013,162 shares during the period. Potomac Fund Management Inc. ADV acquired a new stake in Microchip Technology in the 4th quarter valued at $738,000. First Citizens Bank & Trust Co. grew its position in Microchip Technology by 468.2% in the 1st quarter. First Citizens Bank & Trust Co. now owns 73,737 shares of the semiconductor company's stock valued at $3,570,000 after purchasing an additional 60,760 shares during the period. Finally, Allstate Corp acquired a new stake in Microchip Technology in the 4th quarter valued at $922,000. Institutional investors and hedge funds own 91.51% of the company's stock.

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.