Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been given a consensus rating of “Moderate Buy” by the twenty-five research firms that are presently covering the stock, Marketbeat.com reports. Seven research analysts have rated the stock with a hold rating, fourteen have given a buy rating and four have given a strong buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $98.1818.

A number of research firms have weighed in on MCHP. Zacks Research raised Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Cantor Fitzgerald reissued an “overweight” rating and issued a $125.00 price objective on shares of Microchip Technology in a report on Wednesday, May 13th. JPMorgan Chase & Co. raised their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Rosenblatt Securities raised their target price on shares of Microchip Technology from $115.00 to $120.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Finally, UBS Group reiterated a “buy” rating on shares of Microchip Technology in a research note on Tuesday, June 2nd.

Microchip Technology Price Performance

MCHP opened at $87.93 on Friday. The company has a fifty day moving average price of $93.01 and a two-hundred day moving average price of $78.37. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The firm has a market capitalization of $47.67 billion, a PE ratio of 418.73, a P/E/G ratio of 0.90 and a beta of 1.73.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the previous year, the business earned $0.11 EPS. The firm’s revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, analysts anticipate that Microchip Technology will post 2.66 earnings per share for the current year.

Microchip Technology Announces Dividend

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

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the firm’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer owned 9,385,834 shares of the company’s stock, valued at $878,326,345.72. This trade represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. The trade was a 11.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 553,302 shares of company stock worth $49,673,635. Company insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. EFG International AG acquired a new position in Microchip Technology during the fourth quarter worth about $29,000. Miller Capital Partners Inc. acquired a new position in Microchip Technology during the fourth quarter worth about $29,000. Garton & Associates Financial Advisors LLC acquired a new position in Microchip Technology during the fourth quarter worth about $33,000. Reflection Asset Management acquired a new position in Microchip Technology during the fourth quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd raised its stake in Microchip Technology by 4,663.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after acquiring an additional 513 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.