Citigroup Cuts Microchip Technology (NASDAQ:MCHP) Price Target to $80.00

Microchip Technology (NASDAQ:MCHP) had its target price lowered by Citigroup from $90.00 to $80.00 in a research note issued to investors on Friday morning,Benzinga reports. The brokerage currently has a buy rating on the semiconductor company’s stock.

Several other brokerages also recently commented on MCHP. Wells Fargo & Company cut their target price on Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating on the stock in a research note on Friday. Stifel Nicolaus lowered their price target on Microchip Technology from $82.00 to $75.00 and set a “buy” rating on the stock in a report on Friday. Cantor Fitzgerald reduced their price objective on Microchip Technology from $70.00 to $65.00 and set a “neutral” rating for the company in a report on Friday. Susquehanna decreased their target price on Microchip Technology from $85.00 to $75.00 and set a “positive” rating for the company in a research report on Friday. Finally, Needham & Company LLC dropped their price target on shares of Microchip Technology from $77.00 to $73.00 and set a “buy” rating on the stock in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $73.47.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $56.28 on Friday. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $77.20. The firm’s 50-day moving average is $64.24 and its 200 day moving average is $64.41. The stock has a market cap of $30.37 billion, a price-to-earnings ratio of -165.53, a PEG ratio of 1.79 and a beta of 1.57. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.31 and a quick ratio of 1.33.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same period in the previous year, the company earned $0.46 earnings per share. The business’s revenue for the quarter was down 2.0% compared to the same quarter last year. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Sell-side analysts anticipate that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 9th. Investors of record on Monday, November 24th will be issued a $0.455 dividend. The ex-dividend date of this dividend is Monday, November 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.2%. Microchip Technology’s dividend payout ratio (DPR) is presently -404.44%.

Insider Activity at Microchip Technology

In other 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 transaction of $505,504.32. Following the transaction, the chief financial officer owned 30,010 shares in the company, valued at $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 is available through this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the business’s 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 sale, the director directly owned 30,665 shares of the company’s stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Winnow Wealth LLC bought a new position in shares of Microchip Technology in the third quarter worth about $25,000. Root Financial Partners LLC purchased a new stake in Microchip Technology in the 3rd quarter worth approximately $28,000. MCF Advisors LLC increased its holdings in 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. Salomon & Ludwin LLC raised its stake in Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 329 shares during the period. Finally, Quent Capital LLC purchased a new position in Microchip Technology during the third quarter valued at approximately $32,000. 91.51% of the stock is currently owned by hedge funds and other 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.