Microchip Technology Incorporated (NASDAQ:MCHP) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been given an average recommendation of “Moderate Buy” by the twenty-six analysts that are presently covering the company, Marketbeat reports. Eight investment analysts have rated the stock with a hold recommendation, fifteen have given a buy recommendation and three have given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $86.00.

MCHP has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their price objective on Microchip Technology from $85.00 to $95.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Weiss Ratings upgraded Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 6th. Wells Fargo & Company lifted their target price on Microchip Technology from $68.00 to $70.00 and gave the company an “equal weight” rating in a research report on Friday, February 6th. BNP Paribas Exane upgraded Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price target for the company in a report on Thursday, January 22nd. Finally, Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a research report on Wednesday, February 4th.

Insider Activity at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the transaction, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.94% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors have recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of Microchip Technology during the 4th quarter worth approximately $664,564,000. Dodge & Cox grew its holdings in shares of Microchip Technology by 958.4% in the second quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock valued at $446,132,000 after acquiring an additional 5,740,827 shares in the last quarter. Barclays PLC increased its position in shares of Microchip Technology by 66.5% during the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock valued at $891,881,000 after acquiring an additional 5,590,210 shares during the last quarter. Boston Partners increased its position in shares of Microchip Technology by 38.2% during the second quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock valued at $1,041,868,000 after acquiring an additional 4,101,034 shares during the last quarter. Finally, State Street Corp lifted its holdings in Microchip Technology by 8.5% during the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock worth $2,244,016,000 after acquiring an additional 2,489,258 shares during the period. 91.51% of the stock is owned by institutional investors.

Microchip Technology Stock Down 2.2%

Microchip Technology stock opened at $63.29 on Friday. The firm has a market capitalization of $34.25 billion, a price-to-earnings ratio of -218.24, a price-to-earnings-growth ratio of 1.63 and a beta of 1.45. The firm’s fifty day moving average price is $73.55 and its two-hundred day moving average price is $66.56. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $83.35. 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 earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the previous year, the firm posted $0.20 earnings per share. The firm’s revenue for the quarter 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, equities research analysts predict that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were paid a $0.455 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.82 annualized dividend and a dividend yield of 2.9%. Microchip Technology’s dividend payout ratio is presently -627.59%.

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.