Barclays Begins Coverage on Microchip Technology (NASDAQ:MCHP)

Investment analysts at Barclays assumed coverage on shares of Microchip Technology (NASDAQ:MCHP) in a research note issued to investors on Thursday. The brokerage set an “equal weight” rating and a $80.00 price target on the semiconductor company’s stock. Barclays‘s target price would indicate a potential downside of 3.06% from the stock’s previous close.

MCHP has been the topic of several other reports. KeyCorp reissued an “overweight” rating and set a $85.00 price target on shares of Microchip Technology in a report on Friday, February 6th. Argus raised Microchip Technology to a “strong-buy” rating in a report on Monday. UBS Group boosted their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, January 26th. Zacks Research raised shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Finally, BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price for the company in a report on Thursday, January 22nd. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $86.00.

Microchip Technology Stock Performance

NASDAQ MCHP traded up $1.78 during trading hours on Thursday, hitting $82.53. The company’s stock had a trading volume of 1,276,375 shares, compared to its average volume of 9,929,544. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $83.35. The company’s 50 day simple moving average is $71.17 and its two-hundred day simple moving average is $65.69. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The company has a market cap of $44.66 billion, a P/E ratio of -284.58, a price-to-earnings-growth ratio of 1.94 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter last year, the firm posted $0.20 EPS. The business’s quarterly revenue was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, sell-side analysts expect that Microchip Technology will post 1.03 EPS for the current fiscal year.

Insider Activity

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the completion of the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at $1,516,184.71. This trade represents a 12.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the transaction, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 121,615 shares of company stock worth $9,641,654 over the last ninety days. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Institutional investors and hedge funds have recently modified their holdings of the stock. Winnow Wealth LLC bought a new stake in shares of Microchip Technology in the third quarter valued at about $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology in the 3rd quarter valued at about $28,000. Salomon & Ludwin LLC lifted its position in shares of Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 329 shares during the period. Quent Capital LLC purchased a new stake in shares of Microchip Technology in the 3rd quarter worth approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. boosted its stake in shares of Microchip Technology by 106.8% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 267 shares in the last quarter. Hedge funds and other 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.