Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Recommendation of “Moderate Buy” from Brokerages

Microchip Technology Incorporated (NASDAQ:MCHP) has been given a consensus rating of “Moderate Buy” by the twenty-one research firms that are presently covering the firm, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $75.75.

A number of equities research analysts have commented on MCHP shares. The Goldman Sachs Group started coverage on shares of Microchip Technology in a report on Thursday, July 10th. They issued a “buy” rating and a $88.00 price target for the company. Cantor Fitzgerald began coverage on shares of Microchip Technology in a research report on Wednesday, June 18th. They set a “neutral” rating and a $70.00 price target on the stock. UBS Group lifted their price objective on shares of Microchip Technology from $65.00 to $85.00 and gave the stock a “buy” rating in a research report on Monday, July 7th. Wells Fargo & Company initiated coverage on shares of Microchip Technology in a research report on Monday, September 15th. They issued an “equal weight” rating and a $60.00 price objective on the stock. Finally, KeyCorp boosted 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.

Microchip Technology Price Performance

MCHP stock opened at $64.84 on Friday. Microchip Technology has a 52-week low of $34.13 and a 52-week 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. The company has a fifty day moving average price of $66.50 and a 200-day moving average price of $60.09. The company has a market capitalization of $34.99 billion, a P/E ratio of -190.71, a PEG ratio of 1.89 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, topping 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 company had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.05 billion. During the same period in the prior year, the company posted $0.53 earnings per share. Microchip Technology’s revenue for the quarter was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, equities analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Shareholders 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 of this dividend was Friday, August 22nd. Microchip Technology’s payout ratio is currently -535.29%.

Insider Buying and Selling

In other Microchip Technology news, CFO James Eric Bjornholt sold 7,356 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the chief financial officer owned 30,010 shares of the company’s stock, valued at $2,062,287.20. The trade was a 19.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 transaction of $682,500.00. Following the completion of the transaction, the director directly owned 30,665 shares of the company’s stock, valued at approximately $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 owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Garde Capital Inc. bought a new position in Microchip Technology in the 1st quarter worth $30,000. MCF Advisors LLC grew its position in Microchip Technology by 211.2% during the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 321 shares during the last quarter. Carderock Capital Management Inc. purchased a new stake in Microchip Technology during the 2nd quarter valued at about $39,000. WPG Advisers LLC purchased a new stake in shares of Microchip Technology during the 1st quarter valued at about $40,000. Finally, Painted Porch Advisors LLC purchased a new stake in shares of Microchip Technology during the 2nd quarter valued at about $40,000. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

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.