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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been assigned an average rating of “Moderate Buy” from the twenty-four brokerages that are covering the stock, MarketBeat reports. Seven equities research analysts have rated the stock with a hold recommendation, thirteen have assigned a buy recommendation and four have given a strong buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $99.7619.

A number of research analysts recently issued reports on MCHP shares. Wall Street Zen upgraded shares of Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Truist Financial boosted their target price on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a research report on Friday, May 8th. TD Cowen decreased their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a report on Monday, July 13th. Needham & Company LLC raised their price target on Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. lifted their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th.

Insiders Place Their Bets

In other news, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $93.44, for a total value of $467,200.00. Following the sale, the chief operating officer owned 135,508 shares in the company, valued at approximately $12,661,867.52. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $95.48, for a total transaction of $954,800.00. Following the completion of the sale, the director owned 20,665 shares in the company, valued at approximately $1,973,094.20. The trade was a 32.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 136,721 shares of company stock valued at $12,793,719. Corporate insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

A number of hedge funds have recently bought and sold shares of the stock. EFG International AG acquired a new stake in Microchip Technology in the 4th quarter worth $29,000. Miller Capital Partners Inc. acquired a new position in shares of Microchip Technology during the fourth quarter valued at about $29,000. Reflection Asset Management bought a new stake in shares of Microchip Technology in the fourth quarter valued at about $33,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of Microchip Technology in the fourth quarter valued at about $33,000. Finally, Caitong International Asset Management Co. Ltd grew its position 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 buying an additional 513 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Microchip Technology Stock Up 2.0%

Shares of Microchip Technology stock opened at $85.02 on Thursday. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The stock has a 50 day moving average price of $91.26 and a two-hundred day moving average price of $80.99. The stock has a market capitalization of $46.17 billion, a P/E ratio of 404.88, a PEG ratio of 0.84 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the firm posted $0.11 earnings per share. The company’s quarterly revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts expect that Microchip Technology will post 2.7 earnings per share for the current year.

Microchip Technology Dividend Announcement

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

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.