Microchip Technology (NASDAQ:MCHP) Given New $90.00 Price Target at Truist Financial

Microchip Technology (NASDAQ:MCHP) had its target price reduced by Truist Financial from $105.00 to $90.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have a hold rating on the semiconductor company’s stock.

Several other analysts have also issued reports on MCHP. Rosenblatt Securities reiterated a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a report on Friday. Weiss Ratings cut shares of Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, July 24th. TD Cowen dropped their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a report on Monday, July 13th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $125.00 price objective on shares of Microchip Technology in a research note on Monday, August 3rd. Finally, Citigroup upped their target price on Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.85.

Microchip Technology Stock Up 13.9%

Microchip Technology stock opened at $84.69 on Friday. The stock has a market capitalization of $45.99 billion, a PE ratio of 403.30, a price-to-earnings-growth ratio of 0.75 and a beta of 1.76. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The company has a 50 day moving average of $87.14 and a 200-day moving average of $81.30.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. The firm had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company’s revenue was up 38.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, equities research analysts anticipate that Microchip Technology will post 2.7 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s dividend payout ratio is presently 866.67%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 3,667 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction on Friday, May 15th. The stock was sold at an average price of $95.48, for a total transaction of $954,800.00. Following the transaction, the director owned 20,665 shares in the company, valued at approximately $1,973,094.20. This trade represents a 32.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 26,750 shares of company stock valued at $2,543,170 over the last quarter. 1.79% of the stock is owned by company insiders.

Institutional Trading of Microchip Technology

Institutional investors have recently bought and sold shares of the company. EFG International AG acquired a new stake in Microchip Technology during the fourth quarter worth approximately $29,000. Miller Capital Partners Inc. bought a new stake in shares of Microchip Technology during the fourth quarter worth about $29,000. Continuum Advisory LLC bought a new stake in Microchip Technology during the 2nd quarter worth approximately $30,000. Reflection Asset Management purchased a new stake in Microchip Technology in the 4th quarter valued at $33,000. Finally, Garton & Associates Financial Advisors LLC purchased a new stake in shares of Microchip Technology in the fourth quarter valued at about $33,000. Institutional investors own 91.51% of the company’s stock.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip’s data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

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.