Microchip Technology (NASDAQ:MCHP) Now Covered by Barclays

Barclays initiated coverage on shares of Microchip Technology (NASDAQ:MCHP) in a report released on Thursday morning, MarketBeat reports. The firm issued an equal weight rating and a $80.00 target price on the semiconductor company’s stock.

Several other research firms have also weighed in on MCHP. TD Cowen decreased their target price on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating on the stock in a report on Friday, November 7th. Stifel Nicolaus set a $90.00 price objective on shares of Microchip Technology in a research note on Friday, February 6th. Argus upgraded Microchip Technology to a “strong-buy” rating in a research note on Monday. Mizuho raised their price target on Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a research note on Friday, February 6th. Finally, B. Riley Financial upped their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Down 2.3%

Shares of MCHP stock opened at $78.92 on Thursday. The stock has a market cap of $42.71 billion, a P/E ratio of -272.14, a P/E/G ratio of 2.03 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. The stock has a 50 day moving average of $71.46 and a 200 day moving average of $65.79. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $83.35.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (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 firm had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter last year, the company earned $0.20 EPS. The firm’s revenue for the quarter was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, sell-side analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be paid a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. Microchip Technology’s dividend payout ratio is -627.59%.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 121,615 shares of company stock valued at $9,641,654 in the last quarter. Company insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Winnow Wealth LLC purchased a new stake in shares of Microchip Technology during the third quarter worth about $25,000. Root Financial Partners LLC purchased a new position in shares of Microchip Technology during the 3rd quarter worth $28,000. Salomon & Ludwin LLC boosted its holdings in shares of Microchip Technology by 219.3% during 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. Quent Capital LLC purchased a new stake in shares of Microchip Technology in the third quarter valued at $32,000. Finally, E Fund Management Hong Kong Co. Ltd. grew its position in shares of Microchip Technology by 106.8% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 267 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.

About Microchip Technology

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.