Microchip Technology Incorporated (NASDAQ:MCHP) Receives $75.75 Consensus Target Price from Brokerages

Microchip Technology Incorporated (NASDAQ:MCHP) has received a consensus recommendation of “Moderate Buy” from the twenty-two analysts that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation, thirteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $75.75.

Several analysts have recently issued reports on the stock. Wells Fargo & Company began coverage on Microchip Technology in a research report on Monday, September 15th. They issued an “equal weight” rating and a $60.00 price target for the company. Raymond James Financial lifted their target price on Microchip Technology from $65.00 to $75.00 and gave the company a “strong-buy” rating in a report on Friday, August 8th. Piper Sandler increased their price target on shares of Microchip Technology from $65.00 to $80.00 and gave the stock an “overweight” rating in a report on Friday, August 8th. The Goldman Sachs Group began coverage on shares of Microchip Technology in a research report on Thursday, July 10th. They issued a “buy” rating and a $88.00 price objective for the company. Finally, Citigroup upped their target price on shares of Microchip Technology from $68.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, July 7th.

Microchip Technology Price Performance

Shares of MCHP opened at $65.09 on Tuesday. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The business’s fifty day moving average is $65.33 and its 200 day moving average is $62.22. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $79.44. The stock has a market cap of $35.13 billion, a P/E ratio of -191.44, a P/E/G ratio of 1.85 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm’s revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.53 earnings per share. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Sell-side analysts anticipate that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology’s dividend payout ratio (DPR) is currently -535.29%.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the transaction, the chief financial officer owned 30,010 shares in the company, valued at $2,062,287.20. This trade represents a 19.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of the firm’s stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total value of $682,500.00. Following the transaction, the director directly owned 30,665 shares in the company, valued at $2,092,886.25. This trade represents a 24.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Large investors have recently modified their holdings of the business. Garde Capital Inc. bought a new position in Microchip Technology in the first quarter worth about $30,000. Salomon & Ludwin LLC raised its position in shares of Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 329 shares in the last quarter. MCF Advisors LLC lifted its stake in shares of Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 321 shares during the period. E Fund Management Hong Kong Co. Ltd. boosted its position in shares of Microchip Technology by 106.8% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 267 shares in the last quarter. Finally, Carderock Capital Management Inc. bought a new stake in shares of Microchip Technology during the second quarter valued at approximately $39,000. 91.51% of the stock is owned by institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.