Susquehanna Forecasts Strong Price Appreciation for Microchip Technology (NASDAQ:MCHP) Stock

Microchip Technology (NASDAQ:MCHP) had its price target lifted by equities research analysts at Susquehanna from $95.00 to $120.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a “positive” rating on the semiconductor company’s stock. Susquehanna’s price target indicates a potential upside of 21.10% from the company’s previous close.

MCHP has been the subject of several other reports. Wall Street Zen lowered Microchip Technology from a “buy” rating to a “hold” rating in a research report on Saturday, April 25th. Wells Fargo & Company upped their price target on Microchip Technology from $68.00 to $70.00 and gave the company an “equal weight” rating in a research report on Friday, February 6th. Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Cantor Fitzgerald raised their price objective on Microchip Technology from $85.00 to $100.00 and gave the stock an “overweight” rating in a research report on Monday, February 2nd. Finally, UBS Group lifted their price objective on Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $95.35.

Microchip Technology Trading Down 2.5%

MCHP opened at $99.09 on Friday. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. 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 firm has a market capitalization of $53.62 billion, a price-to-earnings ratio of 471.88, a PEG ratio of 1.32 and a beta of 1.75. The company’s 50 day moving average price is $73.27 and its two-hundred day moving average price is $69.20.

Microchip Technology (NASDAQ:MCHP) last released its quarterly 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 firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.76%. The company’s revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, research analysts predict that Microchip Technology will post 2.14 earnings per share for the current year.

Insider Activity

In related news, CEO Steve Sanghi sold 416,581 shares of the company’s stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the sale, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. This represents a 4.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 526,552 shares of company stock valued at $47,130,465. 1.94% of the stock is owned by insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently added to or reduced their stakes in MCHP. Resonant Capital Advisors LLC grew its position in shares of Microchip Technology by 0.9% during the 1st quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock worth $810,000 after buying an additional 118 shares during the period. MCF Advisors LLC lifted its position in shares of Microchip Technology by 25.8% during the 4th quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 135 shares during the period. Gagnon Securities LLC boosted its stake in Microchip Technology by 0.5% during the fourth quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company’s stock worth $1,731,000 after acquiring an additional 137 shares in the last quarter. Evelyn Partners Investment Management LLP boosted its stake in Microchip Technology by 1.5% during the fourth quarter. Evelyn Partners Investment Management LLP now owns 9,300 shares of the semiconductor company’s stock worth $593,000 after acquiring an additional 140 shares in the last quarter. Finally, Millstone Evans Group LLC grew its holdings in Microchip Technology by 23.7% in the fourth quarter. Millstone Evans Group LLC now owns 742 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 142 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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.