Microchip Technology Incorporated (NASDAQ:MCHP – Get Free Report)’s share price fell 10% on Friday after KeyCorp lowered their price target on the stock from $135.00 to $120.00. KeyCorp currently has an overweight rating on the stock. Microchip Technology traded as low as $60.40 and last traded at $58.38. Approximately 4,340,023 shares were traded during trading, a decline of 58% from the average daily volume of 10,342,704 shares. The stock had previously closed at $64.85.
Several other equities research analysts have also recently commented on MCHP. Weiss Ratings upgraded Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. BMO Capital Markets started coverage on Microchip Technology in a report on Friday, August 21st. They issued an “outperform” rating and a $95.00 target price on the stock. Rosenblatt Securities cut their price objective on Microchip Technology from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Friday. Wells Fargo & Company reduced their target price on shares of Microchip Technology from $88.00 to $80.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 20th. Finally, UBS Group restated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and an average price target of $95.33.
View Our Latest Stock Report on Microchip Technology
Insider Activity
In other news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by insiders.
More Microchip Technology News
Here are the key news stories impacting Microchip Technology this week:
- Positive Sentiment: Fiscal Q2 earnings were $0.97 per share, above the $0.94 consensus, while revenue of $1.62 billion also topped estimates and rose 42.2% year over year. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
- Positive Sentiment: Several firms still maintain bullish ratings despite reducing their targets: Susquehanna and Cantor Fitzgerald rate MCHP positive/overweight, while Needham and Rosenblatt retain buy ratings. Their revised targets remain above the $64.85 reference price. Article: Analysts Slash Their Forecasts After Q2 Results
- Neutral Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually; the dividend provides income but is unlikely to offset concerns about the outlook.
- Negative Sentiment: December-quarter guidance is the key concern: Microchip forecast revenue ranging from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, with the guidance midpoint below analyst expectations. Article: Microchip Expects December-Quarter Revenue to Decline 3% to Grow 1%
- Negative Sentiment: Analysts cut price targets after the results, including Susquehanna ($120 to $100), Cantor Fitzgerald ($125 to $100), Needham ($120 to $85), Rosenblatt ($120 to $115), and Evercore ISI ($117 to $75). The cuts signal a more cautious outlook, even where firms maintained favorable ratings. Article: Evercore ISI Adjusts Price Target
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the stock. State Street Corp raised its holdings in Microchip Technology by 2.9% during the second quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock worth $2,631,273,000 after purchasing an additional 821,147 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Microchip Technology by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock valued at $750,102,000 after acquiring an additional 1,272,838 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Microchip Technology in the second quarter worth $537,423,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Microchip Technology by 23.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock valued at $461,520,000 after acquiring an additional 962,362 shares in the last quarter. Finally, Pictet Asset Management Holding SA increased its stake in Microchip Technology by 30.7% in the 3rd quarter. Pictet Asset Management Holding SA now owns 4,881,363 shares of the semiconductor company’s stock valued at $379,661,000 after buying an additional 1,145,500 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.
Microchip Technology Trading Down 13.7%
The company has a fifty day moving average of $75.19 and a 200-day moving average of $79.48. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. The firm has a market capitalization of $30.37 billion, a PE ratio of 83.98, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.03. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same quarter in the previous year, the business earned $0.35 EPS. Microchip Technology’s quarterly revenue was up 42.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Microchip Technology Incorporated will post 3.20 earnings per share for the current fiscal year.
Microchip Technology Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Monday, November 23rd will be issued a dividend of $0.4550 per share. This represents a $1.82 annualized dividend and a yield of 3.3%. The ex-dividend date is Monday, November 23rd. Microchip Technology’s dividend payout ratio (DPR) is 271.64%.
Microchip Technology Company Profile
Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.
Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.
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