Microchip Technology (NASDAQ:MCHP) Cut to “Hold” at Wall Street Zen

Microchip Technology (NASDAQ:MCHP) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.

MCHP has been the subject of a number of other research reports. Bank of America upgraded Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 price target for the company in a research report on Wednesday, January 28th. Susquehanna lifted their price objective on Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a research report on Thursday, January 22nd. BNP Paribas Exane upgraded Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price objective for the company in a research note on Thursday, January 22nd. JPMorgan Chase & Co. increased their target price on shares of Microchip Technology from $85.00 to $95.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Finally, Piper Sandler raised their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a research note on Thursday, January 15th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Stock Performance

Shares of MCHP opened at $62.97 on Monday. Microchip Technology has a one year low of $34.13 and a one year high of $83.35. The business has a fifty day moving average of $73.30 and a 200 day moving average of $66.59. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The firm has a market capitalization of $34.08 billion, a P/E ratio of -217.14, a PEG ratio of 1.59 and a beta of 1.45.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $1.19 billion. During the same period in the previous year, the business posted $0.20 earnings per share. The firm’s quarterly revenue 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 anticipate that Microchip Technology will post 1.03 EPS for the current year.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer owned 9,922,319 shares in the company, valued at approximately $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 SEC, which can be accessed through this hyperlink. Corporate insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Winnow Wealth LLC bought a new stake in shares of Microchip Technology during the third quarter valued at approximately $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology during the third quarter valued at $28,000. EFG International AG purchased a new position in Microchip Technology during the fourth quarter valued at $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology in the 4th quarter valued at $29,000. Finally, Salomon & Ludwin LLC increased its holdings in Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after acquiring an additional 329 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

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.