Wells Fargo & Company Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price objective dropped by stock analysts at Wells Fargo & Company from $95.00 to $88.00 in a research note issued on Monday,Benzinga reports. The firm currently has an “equal weight” rating on the semiconductor company’s stock. Wells Fargo & Company‘s price target points to a potential upside of 8.70% from the company’s previous close.

Several other equities research analysts have also recently weighed in on MCHP. TD Cowen reduced their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Cantor Fitzgerald reissued an “overweight” rating and set a $125.00 price objective on shares of Microchip Technology in a research report on Wednesday, May 13th. Rosenblatt Securities boosted their target price on shares of Microchip Technology from $115.00 to $120.00 and gave the company a “buy” rating in a report on Friday, May 8th. JPMorgan Chase & Co. upped their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, June 4th. Four research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $99.76.

Microchip Technology Stock Performance

Shares of MCHP opened at $80.96 on Monday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology has a one year low of $48.52 and a one year high of $105.91. The company has a 50-day simple moving average of $92.15 and a two-hundred day simple moving average of $80.59. The firm has a market capitalization of $43.96 billion, a PE ratio of 385.54, a price-to-earnings-growth ratio of 0.82 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the business earned $0.11 EPS. The business’s revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts anticipate that Microchip Technology will post 2.69 EPS for the current fiscal year.

Insider Buying and Selling

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 553,302 shares of company stock worth $49,673,635 over the last three months. 1.79% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Several institutional investors have recently bought and sold shares of the company. Abound Wealth Management increased its stake in Microchip Technology by 109.8% during the 2nd quarter. Abound Wealth Management now owns 1,114 shares of the semiconductor company’s stock valued at $102,000 after purchasing an additional 583 shares in the last quarter. Accel Wealth Management purchased a new stake in shares of Microchip Technology during the second quarter valued at approximately $347,000. Tema ETFs LLC grew its holdings in shares of Microchip Technology by 9.8% during the second quarter. Tema ETFs LLC now owns 11,393 shares of the semiconductor company’s stock valued at $1,039,000 after buying an additional 1,015 shares during the last quarter. Handelsbanken Fonder AB increased its position in shares of Microchip Technology by 15.8% during the second quarter. Handelsbanken Fonder AB now owns 289,566 shares of the semiconductor company’s stock valued at $26,408,000 after acquiring an additional 39,412 shares in the last quarter. Finally, City Holding Co. increased its position in shares of Microchip Technology by 4.0% during the second quarter. City Holding Co. now owns 26,614 shares of the semiconductor company’s stock valued at $2,427,000 after acquiring an additional 1,019 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.