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

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

Several other analysts have also recently weighed in on MCHP. 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 research note on Thursday, January 22nd. Truist Financial raised their target price on Microchip Technology from $60.00 to $68.00 and gave the stock a “hold” rating in a research report on Friday, February 6th. Needham & Company LLC lifted their target price on Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a report on Friday, February 6th. B. Riley Financial upped their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 12th. Finally, Morgan Stanley increased their price target on Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 6th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $86.00.

Microchip Technology Stock Down 4.4%

NASDAQ:MCHP opened at $64.82 on Friday. The firm’s 50 day simple moving average is $74.23 and its 200 day simple moving average is $66.72. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. Microchip Technology has a one year low of $34.13 and a one year high of $83.35. The company has a market cap of $35.08 billion, a PE ratio of -223.52, a P/E/G ratio of 1.71 and a beta of 1.45.

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

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the company’s 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 sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. This represents a 0.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in shares of Microchip Technology during the 4th quarter valued at $664,564,000. Dodge & Cox grew its holdings in Microchip Technology by 958.4% in the second quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock worth $446,132,000 after purchasing an additional 5,740,827 shares during the period. Barclays PLC grew its holdings in Microchip Technology by 66.5% in the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock worth $891,881,000 after purchasing an additional 5,590,210 shares during the period. Boston Partners increased its stake in Microchip Technology by 38.2% in the second quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock valued at $1,041,868,000 after purchasing an additional 4,101,034 shares in the last quarter. Finally, State Street Corp increased its stake in Microchip Technology by 8.5% in the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after purchasing an additional 2,489,258 shares in the last quarter. 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.