Microchip Technology (NASDAQ:MCHP) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a report released on Saturday morning.

Several other research firms have also recently weighed in on MCHP. Jefferies Financial Group reiterated a “hold” rating on shares of Microchip Technology in a research report on Wednesday, February 4th. Wells Fargo & Company increased their price objective on Microchip Technology from $75.00 to $95.00 and gave the stock an “equal weight” rating in a research report on Friday. Needham & Company LLC increased their price objective on Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday. BNP Paribas Exane upgraded Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price objective on the stock in a research report on Thursday, January 22nd. Finally, KeyCorp reiterated an “overweight” rating and set a $85.00 price objective on shares of Microchip Technology in a research report on Friday, February 6th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Microchip Technology has an average rating of “Moderate Buy” and an average target price of $95.35.

Microchip Technology Stock Down 2.5%

MCHP stock opened at $99.09 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The stock has a market capitalization of $53.62 billion, a price-to-earnings ratio of 471.88, a PEG ratio of 1.32 and a beta of 1.75. The business’s fifty day moving average price is $73.27 and its two-hundred day moving average price is $69.20. 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 posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a return on equity of 10.76% and a net margin of 4.88%.The company’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts anticipate that Microchip Technology will post 2.14 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a $0.455 dividend. The ex-dividend date is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.8%. Microchip Technology’s dividend payout ratio (DPR) is presently 866.67%.

Insider Activity at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of the firm’s stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 526,552 shares of company stock valued at $47,130,465 in the last quarter. 1.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of Microchip Technology by 2.0% in the fourth quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company’s stock worth $4,683,824,000 after purchasing an additional 1,430,781 shares during the period. State Street Corp increased its position in shares of Microchip Technology by 2.8% in the fourth quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company’s stock worth $1,839,153,000 after purchasing an additional 783,157 shares during the period. Boston Partners grew its position in Microchip Technology by 9.5% in the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after acquiring an additional 1,406,885 shares during the last quarter. Geode Capital Management LLC grew its position in Microchip Technology by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company’s stock valued at $977,638,000 after acquiring an additional 213,188 shares during the last quarter. Finally, Invesco Ltd. grew its position in Microchip Technology by 4.8% in the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company’s stock valued at $955,298,000 after acquiring an additional 684,561 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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.