Microchip Technology (NASDAQ:MCHP) Downgraded to “Hold” Rating by Zacks Research

Microchip Technology (NASDAQ:MCHP) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research firms also recently weighed in on MCHP. UBS Group reiterated a “buy” rating and set a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Barclays raised their target price on Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Truist Financial decreased their price objective on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a report on Friday, August 7th. JPMorgan Chase & Co. raised their price objective on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $98.85.

Microchip Technology Trading Down 2.6%

NASDAQ:MCHP opened at $78.19 on Monday. The company has a 50-day moving average price of $85.23 and a 200-day moving average price of $81.54. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The stock has a market cap of $42.46 billion, a price-to-earnings ratio of 116.70, a P/E/G ratio of 0.62 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the previous year, the company earned $0.27 earnings per share. Microchip Technology’s quarterly revenue was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities analysts predict that Microchip Technology will post 3.16 EPS for the current year.

Insiders Place Their Bets

In other news, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the sale, the director directly owned 17,665 shares of the company’s stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 3,667 shares of the firm’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,596,428.51. The trade was a 11.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 16,667 shares of company stock valued at $1,580,580. 1.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Continuum Advisory LLC bought a new position in shares of Microchip Technology in the second quarter worth approximately $30,000. Johnson Financial Group Inc. bought a new stake in shares of Microchip Technology during the second quarter valued at approximately $31,000. Rakuten Securities Inc. purchased a new position in Microchip Technology in the 2nd quarter worth approximately $34,000. PenderFund Capital Management Ltd. purchased a new position in Microchip Technology in the 2nd quarter worth approximately $36,000. Finally, EFG International AG bought a new position in Microchip Technology in the 4th quarter valued at approximately $29,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.