Wall Street Zen cut shares of Microchip Technology (NASDAQ:MCHP – Free Report) from a buy rating to a hold rating in a report published on Saturday,Wall Street Zen reports.
A number of other equities analysts also recently commented on MCHP. UBS Group reiterated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Cantor Fitzgerald dropped their target price on Microchip Technology from $125.00 to $100.00 and set an “overweight” rating for the company in a report on Friday. B. Riley Financial cut their target price on Microchip Technology from $98.00 to $85.00 and set a “buy” rating for the company in a research note on Friday. Rosenblatt Securities reduced their price target on Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Friday. Finally, Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and a consensus price target of $91.64.
View Our Latest Report on MCHP
Microchip Technology Trading Down 10.0%
MCHP opened at $58.35 on Friday. 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 company’s 50 day simple moving average is $74.85 and its two-hundred day simple moving average is $79.41. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The firm has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a price-to-earnings-growth ratio of 0.40 and a beta of 1.84.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a return on equity of 20.45% and a net margin of 14.96%. The business’s revenue was up 42.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.35 earnings per share. Analysts expect that Microchip Technology will post 3.20 EPS for the current fiscal year.
Microchip Technology Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Monday, November 23rd will be issued a $0.4550 dividend. The ex-dividend date of this dividend is Monday, November 23rd. This represents a $1.82 annualized dividend and a dividend yield of 3.1%. Microchip Technology’s payout ratio is 271.64%.
Insider Buying and Selling at Microchip Technology
In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of MCHP. MSH Capital Advisors LLC raised its position in shares of Microchip Technology by 6.3% during the third quarter. MSH Capital Advisors LLC now owns 3,823 shares of the semiconductor company’s stock worth $297,000 after purchasing an additional 228 shares during the period. Diversified Trust Co boosted its position in shares of Microchip Technology by 77.4% in the 3rd quarter. Diversified Trust Co now owns 19,840 shares of the semiconductor company’s stock valued at $1,543,000 after purchasing an additional 8,655 shares during the period. Aberdeen Group plc boosted its position in shares of Microchip Technology by 403.4% in the 3rd quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock valued at $180,143,000 after purchasing an additional 1,856,181 shares during the period. Allworth Financial LP increased its stake in Microchip Technology by 18.8% in the 3rd quarter. Allworth Financial LP now owns 12,342 shares of the semiconductor company’s stock worth $960,000 after purchasing an additional 1,957 shares in the last quarter. Finally, Fisher Asset Management LLC increased its stake in Microchip Technology by 6.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,615 shares of the semiconductor company’s stock worth $281,000 after purchasing an additional 229 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.
Key Microchip Technology News
Here are the key news stories impacting Microchip Technology this week:
- Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
- Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
- Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
- Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
- Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update
About Microchip Technology
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