Microchip Technology (NASDAQ:MCHP) Price Target Cut to $85.00 by Analysts at B. Riley Financial

Microchip Technology (NASDAQ:MCHP) had its price target dropped by stock analysts at B. Riley Financial from $98.00 to $85.00 in a report released on Friday, Benzinga reports. The firm presently has a “buy” rating on the semiconductor company’s stock. B. Riley Financial‘s price objective suggests a potential upside of 47.82% from the stock’s current price.

A number of other research analysts have also issued reports on MCHP. Truist Financial cut their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. BMO Capital Markets started coverage on shares of Microchip Technology in a research note on Friday, August 21st. They set an “outperform” rating and a $95.00 price objective for the company. Zacks Research lowered shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, Rosenblatt Securities cut their target price on Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $94.24.

Microchip Technology Stock Down 11.3%

Shares of MCHP traded down $7.35 during mid-day trading on Friday, hitting $57.50. 9,861,596 shares of the company traded hands, compared to its average volume of 10,363,474. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $31.23 billion, a PE ratio of 85.78, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84. The business has a 50 day moving average of $75.19 and a 200 day moving average of $79.48.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, beating the consensus estimate of $0.94 by $0.03. The firm had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. Microchip Technology’s revenue was up 42.2% on a year-over-year basis. During the same period last year, the firm posted $0.35 EPS. Equities research analysts anticipate that Microchip Technology will post 3.20 EPS for the current year.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale 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. Insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Several large investors have recently made changes to their positions in MCHP. TOP Private Wealth LLC. purchased a new stake in shares of Microchip Technology during the 2nd quarter worth about $29,000. GK Wealth Management LLC acquired a new stake in Microchip Technology in the 3rd quarter valued at $29,000. Continuum Advisory LLC acquired a new stake in Microchip Technology in the 2nd quarter valued at $30,000. Johnson Financial Group Inc. purchased a new stake in Microchip Technology in the 2nd quarter worth $31,000. Finally, Rakuten Securities Inc. purchased a new stake in Microchip Technology in the 2nd quarter worth $34,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology News Roundup

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Fiscal Q2 earnings were $0.97 per share, above the $0.94 consensus, while revenue of $1.62 billion also topped estimates and rose 42.2% year over year. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Several firms still maintain bullish ratings despite reducing their targets: Susquehanna and Cantor Fitzgerald rate MCHP positive/overweight, while Needham and Rosenblatt retain buy ratings. Their revised targets remain above the $64.85 reference price. Article: Analysts Slash Their Forecasts After Q2 Results
• Neutral Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually; the dividend provides income but is unlikely to offset concerns about the outlook.
• Negative Sentiment: December-quarter guidance is the key concern: Microchip forecast revenue ranging from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, with the guidance midpoint below analyst expectations. Article: Microchip Expects December-Quarter Revenue to Decline 3% to Grow 1%
• Negative Sentiment: Analysts cut price targets after the results, including Susquehanna ($120 to $100), Cantor Fitzgerald ($125 to $100), Needham ($120 to $85), Rosenblatt ($120 to $115), and Evercore ISI ($117 to $75). The cuts signal a more cautious outlook, even where firms maintained favorable ratings. Article: Evercore ISI Adjusts Price Target

About Microchip Technology

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.