Microchip Technology (NASDAQ:MCHP) Cut to Hold at Zacks Research

Zacks Research cut shares of Microchip Technology (NASDAQ:MCHP) from a strong-buy rating to a hold rating in a research note published on Tuesday,Zacks.com reports.

A number of other research analysts also recently weighed in on the company. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. TD Cowen decreased their price objective on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a report on Friday, November 7th. Mizuho upped their target price on Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. Citigroup reduced their price target on shares of Microchip Technology from $92.00 to $91.00 and set a “buy” rating for the company in a research report on Friday, February 6th. Finally, Argus upgraded shares of Microchip Technology to a “strong-buy” rating in a research note on Monday, February 9th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Down 0.7%

Shares of MCHP opened at $74.97 on Tuesday. The stock’s 50-day moving average price is $73.61 and its two-hundred day moving average price is $66.48. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $83.35. The company has a market capitalization of $40.57 billion, a PE ratio of -258.52, a PEG ratio of 1.90 and a beta of 1.46. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the firm posted $0.20 EPS. The company’s quarterly revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s payout ratio is presently -627.59%.

Insider Buying and Selling

In other news, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the transaction, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This represents a 0.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of large investors have recently made changes to their positions in the stock. Winnow Wealth LLC bought a new position in Microchip Technology in the 3rd quarter worth about $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology during the 3rd quarter valued at about $28,000. EFG International AG purchased a new position in shares of Microchip Technology during the fourth quarter worth about $29,000. Miller Capital Partners Inc. purchased a new position in shares of Microchip Technology during the fourth quarter worth about $29,000. Finally, Salomon & Ludwin LLC increased its position in shares of Microchip Technology by 219.3% in the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 329 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.