Microchip Technology (NASDAQ:MCHP) Reaches New 52-Week High – What’s Next?

Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $81.93 and last traded at $82.6280, with a volume of 7947 shares trading hands. The stock had previously closed at $80.75.

Analysts Set New Price Targets

Several research firms have recently weighed in on MCHP. Rosenblatt Securities boosted their price objective on shares of Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a report on Friday, February 6th. Zacks Research upgraded shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. UBS Group increased their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 26th. Barclays started coverage on Microchip Technology in a research note on Thursday. They issued an “equal weight” rating and a $80.00 price target on the stock. Finally, KeyCorp reissued an “overweight” rating and issued a $85.00 target price on shares of Microchip Technology in a report on Friday, February 6th. Four analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Trading Down 1.9%

The stock has a 50-day moving average price of $71.17 and a two-hundred day moving average price of $65.69. The stock has a market capitalization of $42.88 billion, a PE ratio of -273.25, a PEG ratio of 1.94 and a beta of 1.46. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the firm posted $0.20 EPS. The firm’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, equities analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be issued a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 2.3%. Microchip Technology’s dividend payout ratio (DPR) is currently -627.59%.

Insider Transactions at Microchip Technology

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

Institutional Trading of Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. MCF Advisors LLC grew its position in shares of Microchip Technology by 25.8% during the fourth quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 135 shares in the last quarter. Millstone Evans Group LLC grew its holdings in Microchip Technology by 23.7% during the 4th quarter. Millstone Evans Group LLC now owns 742 shares of the semiconductor company’s stock valued at $47,000 after buying an additional 142 shares in the last quarter. Dorsey & Whitney Trust CO LLC increased its stake in Microchip Technology by 1.6% in the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 8,973 shares of the semiconductor company’s stock worth $572,000 after acquiring an additional 143 shares during the last quarter. Verdence Capital Advisors LLC raised its holdings in shares of Microchip Technology by 2.2% during the 4th quarter. Verdence Capital Advisors LLC now owns 7,120 shares of the semiconductor company’s stock worth $454,000 after acquiring an additional 150 shares in the last quarter. Finally, Fiduciary Family Office LLC boosted its position in shares of Microchip Technology by 4.4% during the 4th quarter. Fiduciary Family Office LLC now owns 3,567 shares of the semiconductor company’s stock valued at $227,000 after acquiring an additional 151 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

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.