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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been given a consensus rating of “Moderate Buy” by the twenty-four ratings firms that are presently covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and four have issued a strong buy rating on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $99.7619.

A number of equities research analysts have weighed in on MCHP shares. Susquehanna lifted their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a research report on Friday, May 8th. Cantor Fitzgerald restated an “overweight” rating and issued a $125.00 price objective on shares of Microchip Technology in a report on Wednesday, May 13th. JPMorgan Chase & Co. increased their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. TD Cowen dropped their target price 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. Finally, UBS Group reiterated a “buy” rating on shares of Microchip Technology in a report on Tuesday, June 2nd.

Insider Transactions at Microchip Technology

In related news, COO Richard J. Simoncic sold 5,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer owned 130,508 shares in the company, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the transaction, the director directly owned 17,665 shares in the company, valued at approximately $1,722,690.80. The trade was a 14.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, 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

Several hedge funds have recently made changes to their positions in the business. EFG International AG purchased a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. acquired a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Garton & Associates Financial Advisors LLC purchased a new position in Microchip Technology in the 4th quarter valued at approximately $33,000. Reflection Asset Management purchased a new position in Microchip Technology in the 4th quarter valued at approximately $33,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in shares of Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after acquiring an additional 513 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $77.90 on Thursday. The stock has a market cap of $42.30 billion, a PE ratio of 370.97, a P/E/G ratio of 0.79 and a beta of 1.74. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The stock has a fifty day simple moving average of $90.35 and a 200-day simple moving average of $81.21.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the company earned $0.11 EPS. The company’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. Equities analysts anticipate that Microchip Technology will post 2.7 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s dividend payout ratio (DPR) is currently 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.