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

Microchip Technology Incorporated (NASDAQ:MCHP) has received an average recommendation of “Moderate Buy” from the twenty-four ratings firms that are currently covering the company, Marketbeat.com reports. Seven analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and four have issued a strong buy rating on the company. The average 1-year price target among brokerages that have covered the stock in the last year is $99.7619.

Several research firms have weighed in on MCHP. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $125.00 target price on shares of Microchip Technology in a research note on Wednesday, May 13th. Needham & Company LLC increased their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Citigroup raised their price target on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Zacks Research raised shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Finally, UBS Group reiterated a “buy” rating on shares of Microchip Technology in a research note on Tuesday, June 2nd.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $85.02 on Thursday. The stock has a market cap of $46.17 billion, a PE ratio of 404.88, a price-to-earnings-growth ratio of 0.84 and a beta of 1.74. The business has a fifty day simple moving average of $91.26 and a 200-day simple moving average of $80.99. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology’s revenue for the quarter was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts anticipate that Microchip Technology will post 2.7 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s payout ratio is currently 866.67%.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of the company’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the transaction, the chief executive officer directly owned 9,385,834 shares of the company’s stock, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $95.48, for a total value of $954,800.00. Following the sale, the director owned 20,665 shares of the company’s stock, valued at approximately $1,973,094.20. This represents a 32.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 136,721 shares of company stock valued at $12,793,719. 1.79% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in MCHP. Wolverine Asset Management LLC raised its holdings in shares of Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock valued at $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group acquired a new position in Microchip Technology during the fourth quarter worth $6,691,000. Epoch Investment Partners Inc. raised its holdings in Microchip Technology by 16.5% during the fourth quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock valued at $85,967,000 after buying an additional 191,339 shares in the last quarter. Peregrine Investment Management Inc. bought a new position in Microchip Technology during the first quarter valued at about $5,492,000. Finally, Norges Bank acquired a new stake in shares of Microchip Technology in the fourth quarter worth about $664,564,000. 91.51% of the stock is owned by hedge funds and other 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.