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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been given an average recommendation of “Moderate Buy” by the twenty-six brokerages that are covering the company, Marketbeat Ratings reports. Seven research analysts have rated the stock with a hold recommendation, fifteen have given a buy recommendation and four have issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $97.5217.

A number of equities research analysts have issued reports on MCHP shares. UBS Group reiterated a “buy” rating on shares of Microchip Technology in a research note on Tuesday, June 2nd. Needham & Company LLC boosted their target price on shares of Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. upped their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday. Finally, Rosenblatt Securities lifted their price objective 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.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of the business’s stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer owned 9,495,805 shares of the company’s stock, valued at approximately $840,663,616.65. The trade was a 4.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 548,302 shares of company stock worth $49,186,035. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MCHP. Wolverine Asset Management LLC increased its holdings in Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Microchip Technology by 2.1% in the third quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock valued at $4,628,692,000 after purchasing an additional 1,507,554 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group purchased a new position in shares of Microchip Technology during the fourth quarter valued at approximately $6,691,000. Natixis Advisors LLC boosted its position in shares of Microchip Technology by 18.7% during the third quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company’s stock valued at $79,184,000 after buying an additional 194,048 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Microchip Technology by 13.5% during the third quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company’s stock worth $13,447,000 after buying an additional 24,963 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $88.34 on Wednesday. The business has a fifty day moving average price of $85.00 and a two-hundred day moving average price of $74.33. The stock has a market capitalization of $47.89 billion, a PE ratio of 420.69, a P/E/G ratio of 0.93 and a beta of 1.73. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the firm posted $0.11 EPS. Microchip Technology’s quarterly 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, equities analysts predict that Microchip Technology will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

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

About Microchip Technology

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.