Microchip Technology (NASDAQ:MCHP) Earns Outperform Rating from Analysts at BMO Capital Markets

Equities researchers at BMO Capital Markets assumed coverage on shares of Microchip Technology (NASDAQ:MCHP) in a research report issued to clients and investors on Friday,Benzinga reports. The firm set an “outperform” rating and a $95.00 price target on the semiconductor company’s stock. BMO Capital Markets’ target price indicates a potential upside of 25.31% from the company’s current price.

Other research analysts also recently issued reports about the stock. Needham & Company LLC boosted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Zacks Research lowered Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday. Finally, Wells Fargo & Company reduced their price target on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating on the stock in a research note on Monday, July 20th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus price target of $98.67.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $75.81 on Friday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The business has a 50 day moving average price of $84.67 and a 200-day moving average price of $81.53. The firm has a market cap of $41.17 billion, a PE ratio of 113.15, a price-to-earnings-growth ratio of 0.54 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm 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. The company’s revenue for the quarter was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities research analysts predict that Microchip Technology will post 3.16 earnings per share for the current year.

Insider Activity

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO James Eric Bjornholt sold 837 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $80.26, for a total value of $67,177.62. Following the completion of the transaction, the chief financial officer directly owned 30,960 shares in the company, valued at approximately $2,484,849.60. This represents a 2.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,837 shares of company stock valued at $847,338 in the last quarter. 1.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Wolverine Asset Management LLC increased its position in Microchip Technology by 3,833.7% in the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 36,957 shares during the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group purchased a new stake in Microchip Technology during the fourth quarter valued at approximately $6,691,000. Epoch Investment Partners Inc. lifted its stake in shares of Microchip Technology by 16.5% in the 4th quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock valued at $85,967,000 after purchasing an additional 191,339 shares during the last quarter. Peregrine Investment Management Inc. bought a new stake in shares of Microchip Technology in the 1st quarter valued at approximately $5,492,000. Finally, Norges Bank purchased a new position in shares of Microchip Technology in the 4th quarter worth approximately $664,564,000. Institutional investors own 91.51% of the company’s stock.

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.