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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have earned an average recommendation of “Moderate Buy” from the twenty-one brokerages that are covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, six have given a hold recommendation, thirteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $76.00.

Several equities research analysts have recently commented on MCHP shares. TD Cowen reduced their price objective on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research note on Friday, November 7th. Truist Financial reissued a “hold” rating and set a $60.00 price target (down previously from $64.00) on shares of Microchip Technology in a report on Friday, November 7th. Cantor Fitzgerald upgraded Microchip Technology from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $65.00 to $85.00 in a research report on Tuesday, December 16th. Wells Fargo & Company decreased their price objective on Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating on the stock in a research note on Friday, November 7th. Finally, Needham & Company LLC lifted their price objective on Microchip Technology from $73.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, December 4th.

Microchip Technology Trading Up 2.1%

Shares of NASDAQ:MCHP opened at $65.03 on Friday. The stock’s 50-day simple moving average is $60.39 and its two-hundred day simple moving average is $64.99. The stock has a market capitalization of $35.15 billion, a price-to-earnings ratio of -144.51, a PEG ratio of 2.03 and a beta of 1.46. Microchip Technology has a 52-week low of $34.13 and a 52-week high of $77.20. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The firm’s revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.46 earnings per share. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 9th. Shareholders of record on Monday, November 24th were issued a dividend of $0.455 per share. The ex-dividend date of this dividend was Monday, November 24th. This represents a $1.82 annualized dividend and a yield of 2.8%. Microchip Technology’s payout ratio is currently -404.44%.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the completion of the sale, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Norges Bank purchased a new position in Microchip Technology in the 2nd quarter worth approximately $473,320,000. Dodge & Cox raised its position in shares of Microchip Technology by 958.4% during the second quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock valued at $446,132,000 after buying an additional 5,740,827 shares during the last quarter. Boston Partners raised 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 buying an additional 4,101,034 shares during the last quarter. State Street Corp lifted its holdings in shares of Microchip Technology by 8.5% in the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock worth $2,244,016,000 after buying an additional 2,489,258 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC boosted its position in shares of Microchip Technology by 25.7% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock worth $709,506,000 after acquiring an additional 2,257,932 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.