Microchip Technology (NASDAQ:MCHP) Coverage Initiated by Analysts at Wells Fargo & Company

Wells Fargo & Company started coverage on shares of Microchip Technology (NASDAQ:MCHP) in a report released on Monday, MarketBeat Ratings reports. The brokerage issued an equal weight rating and a $60.00 price target on the semiconductor company’s stock.

Several other research firms have also commented on MCHP. Piper Sandler increased their price target on shares of Microchip Technology from $65.00 to $80.00 and gave the company an “overweight” rating in a research report on Friday, August 8th. KeyCorp increased their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the company an “overweight” rating in a research report on Tuesday, July 8th. Zacks Research lowered shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 18th. Citigroup upped their price objective on shares of Microchip Technology from $68.00 to $90.00 and gave the company a “buy” rating in a report on Monday, July 7th. Finally, Rosenblatt Securities upped their price objective on shares of Microchip Technology from $63.00 to $70.00 and gave the company a “buy” rating in a report on Friday, May 30th. One research analyst has 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 stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $75.75.

Microchip Technology Stock Performance

MCHP stock opened at $63.17 on Monday. The firm has a market cap of $34.09 billion, a price-to-earnings ratio of -185.79, a PEG ratio of 1.85 and a beta of 1.56. The firm has a 50-day simple moving average of $67.95 and a two-hundred day simple moving average of $59.71. Microchip Technology has a one year low of $34.13 and a one year high of $81.64. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The company’s quarterly revenue was down 13.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.53 earnings per share. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, equities analysts forecast that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.9%. The ex-dividend date was Friday, August 22nd. Microchip Technology’s dividend payout ratio is currently -535.29%.

Insiders Place Their Bets

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

Institutional Trading of Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Sagespring Wealth Partners LLC increased its position in shares of Microchip Technology by 2.7% during the 2nd quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company’s stock worth $407,000 after purchasing an additional 154 shares during the last quarter. Mechanics Financial Corp increased its position in shares of Microchip Technology by 3.4% during the 2nd quarter. Mechanics Financial Corp now owns 5,014 shares of the semiconductor company’s stock worth $353,000 after purchasing an additional 167 shares during the last quarter. Bollard Group LLC increased its position in shares of Microchip Technology by 5.8% during the 2nd quarter. Bollard Group LLC now owns 3,178 shares of the semiconductor company’s stock worth $224,000 after purchasing an additional 173 shares during the last quarter. Global X Japan Co. Ltd. increased its position in shares of Microchip Technology by 0.4% during the 2nd quarter. Global X Japan Co. Ltd. now owns 45,705 shares of the semiconductor company’s stock worth $3,216,000 after purchasing an additional 174 shares during the last quarter. Finally, Bank of Jackson Hole Trust increased its position in shares of Microchip Technology by 2.0% during the 2nd quarter. Bank of Jackson Hole Trust now owns 8,828 shares of the semiconductor company’s stock worth $621,000 after purchasing an additional 174 shares during the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

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.