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

Wall Street Zen downgraded shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a research report sent to investors on Saturday.

A number of other equities research analysts have also commented on the company. Cantor Fitzgerald upped their target price on Microchip Technology from $85.00 to $100.00 and gave the company an “overweight” rating in a research report on Monday, February 2nd. Mizuho increased their price objective on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research note on Friday, February 6th. Morgan Stanley raised their target price on shares of Microchip Technology from $68.00 to $69.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 6th. Wolfe Research set a $85.00 price target on Microchip Technology in a research report on Tuesday, January 6th. Finally, B. Riley Financial lifted their price objective on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average price target of $86.00.

Microchip Technology Trading Up 0.4%

NASDAQ:MCHP opened at $65.00 on Friday. The company has a market capitalization of $35.17 billion, a P/E ratio of -224.14, a PEG ratio of 1.63 and a beta of 1.45. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $83.35. The firm has a fifty day simple moving average of $74.23 and a 200-day simple moving average of $66.72.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The firm’s quarterly revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the business posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities research analysts anticipate that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, February 23rd. Microchip Technology’s dividend payout ratio is presently -627.59%.

Insider Transactions at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC purchased a new stake in shares of Microchip Technology during the third quarter worth about $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology in the 3rd quarter valued at about $28,000. EFG International AG acquired a new stake in Microchip Technology in the 4th quarter worth about $29,000. Miller Capital Partners Inc. purchased a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Finally, Salomon & Ludwin LLC increased its stake in Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after buying an additional 329 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.