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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been assigned a consensus recommendation of “Moderate Buy” from the twenty-six ratings firms that are presently covering the company, MarketBeat reports. Seven analysts have rated the stock with a hold recommendation, fifteen have given a buy recommendation and four have given a strong buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $86.00.

Several research firms have recently issued reports on MCHP. Bank of America upgraded shares of Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 target price for the company in a research note on Wednesday, January 28th. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price objective on the stock in a report on Thursday, January 22nd. Stifel Nicolaus set a $90.00 price target on Microchip Technology in a report on Friday, February 6th. B. Riley Financial raised their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 12th. Finally, Weiss Ratings upgraded Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 6th.

Insider Buying and Selling

In other news, CFO James Eric Bjornholt sold 4,292 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction 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 trade represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 121,615 shares of company stock valued at $9,641,654 in the last 90 days. 1.94% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently added to or reduced their stakes in MCHP. Norges Bank bought a new stake in shares of Microchip Technology in the 4th quarter worth approximately $664,564,000. Dodge & Cox increased its stake in shares of Microchip Technology by 958.4% in the 2nd quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock worth $446,132,000 after acquiring an additional 5,740,827 shares in the last quarter. Barclays PLC lifted its holdings 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 purchasing an additional 5,590,210 shares during the last quarter. Boston Partners raised its stake in 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 buying an additional 4,101,034 shares during the last quarter. Finally, State Street Corp boosted its stake in Microchip Technology by 8.5% in the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock worth $2,244,016,000 after purchasing an additional 2,489,258 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Stock Up 0.7%

Shares of NASDAQ:MCHP opened at $77.73 on Monday. Microchip Technology has a 52-week low of $34.13 and a 52-week high of $83.35. The business’s 50 day simple moving average is $72.77 and its two-hundred day simple moving average is $66.18. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. The firm has a market cap of $42.06 billion, a P/E ratio of -268.03, a PEG ratio of 1.96 and a beta of 1.46.

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

Microchip Technology Dividend Announcement

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

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.