Microchip Technology (NASDAQ:MCHP) Hits New 12-Month High Following Analyst Upgrade

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week high during trading on Thursday after BNP Paribas Exane upgraded the stock from a neutral rating to an outperform rating. BNP Paribas Exane now has a $90.00 price target on the stock. Microchip Technology traded as high as $78.70 and last traded at $78.46, with a volume of 56797 shares traded. The stock had previously closed at $76.20.

Several other equities research analysts also recently weighed in on the stock. Bank of America lifted their price target on shares of Microchip Technology from $72.00 to $78.00 and gave the company a “neutral” rating in a research note on Wednesday. Truist Financial reaffirmed a “hold” rating and set a $60.00 price target (down from $64.00) on shares of Microchip Technology in a research note on Friday, November 7th. Susquehanna raised their price objective on Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a research note on Thursday. Needham & Company LLC boosted their price objective on Microchip Technology from $75.00 to $77.00 and gave the company a “buy” rating in a report on Tuesday, January 6th. Finally, Citigroup increased their target price on Microchip Technology from $80.00 to $92.00 and gave the stock a “buy” rating in a report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $80.82.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer directly owned 30,089 shares in the company, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 1.94% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently made changes to their positions in MCHP. Parsons Capital Management Inc. RI acquired a new stake in Microchip Technology in the second quarter valued at approximately $280,000. Mizuho Markets Cayman LP purchased a new stake in shares of Microchip Technology during the second quarter valued at $107,584,000. Boston Partners lifted its position in Microchip Technology by 38.0% during the 2nd quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock worth $1,040,114,000 after acquiring an additional 4,076,112 shares during the period. Assenagon Asset Management S.A. raised its stake in shares of Microchip Technology by 498.0% in the third quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock worth $130,675,000 after purchasing an additional 1,694,533 shares during the last quarter. Finally, Voya Investment Management LLC boosted its position in Microchip Technology by 37.2% in the third quarter. Voya Investment Management LLC now owns 3,361,581 shares of the semiconductor company’s stock valued at $215,881,000 after buying an additional 911,731 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Trading Up 2.2%

The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25. The company has a market cap of $42.08 billion, a price-to-earnings ratio of -174.68, a P/E/G ratio of 2.17 and a beta of 1.46. The company’s fifty day moving average is $64.00 and its two-hundred day moving average is $65.29.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.33 by $0.02. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.13 billion. During the same quarter last year, the business earned $0.46 earnings per share. The firm’s revenue was down 2.0% on a year-over-year basis. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. On average, research analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were paid 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 of this dividend was Monday, November 24th. Microchip Technology’s dividend payout ratio is presently -404.44%.

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.