Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Rating of “Moderate Buy” by Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has been given a consensus recommendation of “Moderate Buy” by the twenty-six analysts that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, six have issued a hold rating, fifteen have issued a buy rating and four have assigned a strong buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $97.5217.

A number of research analysts have recently issued reports on MCHP shares. Wells Fargo & Company boosted their price objective on Microchip Technology from $75.00 to $95.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Mizuho boosted their price target on Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a research note on Friday, February 6th. Weiss Ratings cut Microchip Technology from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, May 8th. Finally, Bank of America raised shares of Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 price objective for the company in a research report on Wednesday, January 28th.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $93.85 on Friday. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The business’s 50 day moving average is $76.12 and its 200-day moving average is $70.51. The firm has a market cap of $50.79 billion, a P/E ratio of 446.93, a price-to-earnings-growth ratio of 1.19 and a beta of 1.75. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. Microchip Technology’s revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities research analysts predict that Microchip Technology will post 2.21 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be paid a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, May 22nd. Microchip Technology’s payout ratio is 866.67%.

Key Microchip Technology News

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

• Positive Sentiment: Microchip launched the EX-423 Evacuated Miniature Crystal Oscillator, a rugged low-power timing solution aimed at high-reliability markets such as GPS/GNSS, military radios, medical devices, seismic systems, and satellite communications. The new product broadens Microchip’s timing portfolio and could support longer-term growth in mission-critical applications. Article Title
• Positive Sentiment: Zacks Research upgraded Microchip Technology from “hold” to “strong-buy,” which can improve investor sentiment by reinforcing a more bullish view on the stock. Article Title
• Positive Sentiment: Cantor Fitzgerald reaffirmed its overweight rating on Microchip, adding to the constructive analyst tone around the name. Article Title
• Positive Sentiment: One report said Microchip’s price target was increased by 29.69% to $115.23, suggesting Wall Street sees additional upside from current levels. Article Title
• Neutral Sentiment: A market recap noted that Microchip stock underperformed some competitors on Wednesday, but the headline does not point to a new fundamental issue. Article Title
• Neutral Sentiment: Another article highlighted Microchip’s historical returns over the past decade, which is informative but unlikely to affect near-term trading. Article Title

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 416,581 shares of the stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer owned 9,495,805 shares of the company’s stock, valued at $840,663,616.65. This represents a 4.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 526,552 shares of company stock worth $47,130,465 in the last quarter. 1.94% of the stock is currently owned by corporate insiders.

Institutional Trading of Microchip Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Winnow Wealth LLC bought a new position in Microchip Technology in the third quarter worth approximately $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology during the third quarter valued at approximately $28,000. EFG International AG acquired a new position in shares of Microchip Technology during the fourth quarter worth approximately $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the 4th quarter worth $29,000. Finally, Quent Capital LLC bought a new position in shares of Microchip Technology in the 3rd quarter worth $32,000. 91.51% of the stock is owned by 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.