Microchip Technology (NASDAQ:MCHP) Price Target Raised to $120.00

Microchip Technology (NASDAQ:MCHP) had its target price increased by JPMorgan Chase & Co. from $95.00 to $120.00 in a research report sent to investors on Friday morning,Benzinga reports. They currently have an overweight rating on the semiconductor company’s stock.

Several other equities analysts have also recently weighed in on MCHP. Truist Financial lifted their price target on Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a research report on Friday. Barclays started coverage on Microchip Technology in a research report on Thursday, February 12th. They issued an “equal weight” rating and a $80.00 price target for the company. Jefferies Financial Group reiterated a “hold” rating on shares of Microchip Technology in a research report on Wednesday, February 4th. KeyCorp reiterated an “overweight” rating and issued a $85.00 price target on shares of Microchip Technology in a research report on Friday, February 6th. Finally, UBS Group lifted their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 26th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $95.35.

Microchip Technology Stock Performance

Shares of MCHP opened at $99.09 on Friday. The firm has a market cap of $53.62 billion, a PE ratio of 471.88, a PEG ratio of 1.32 and a beta of 1.75. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The stock’s fifty day moving average price is $73.27 and its two-hundred day moving average price is $69.20.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts forecast that Microchip Technology will post 2.14 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, May 22nd. Microchip Technology’s dividend payout ratio is currently 866.67%.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of the company’s stock in a transaction dated 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 directly owned 9,495,805 shares in the company, valued at $840,663,616.65. This represents a 4.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 526,552 shares of company stock valued at $47,130,465. 1.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC bought a new position in Microchip Technology in the 3rd quarter worth about $25,000. Root Financial Partners LLC purchased a new position in shares of Microchip Technology in the 3rd quarter worth about $28,000. EFG International AG purchased a new position in shares of Microchip Technology in the 4th quarter worth about $29,000. Miller Capital Partners Inc. purchased a new position in shares of Microchip Technology in the 4th quarter worth about $29,000. Finally, Quent Capital LLC purchased a new position in shares of Microchip Technology in the 3rd quarter worth about $32,000. 91.51% of the stock is currently owned by institutional investors.

Key Microchip Technology News

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

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.