Microchip Technology (NASDAQ:MCHP) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a strong-buy rating in a report issued on Tuesday morning,Zacks.com reports.

A number of other research analysts have also recently issued reports on MCHP. Wells Fargo & Company lifted their price objective on Microchip Technology from $75.00 to $95.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Wall Street Zen raised shares of Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Truist Financial upped their target price on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a report on Friday, May 8th. UBS Group upped their target price on shares of Microchip Technology from $115.00 to $130.00 and gave the stock a “buy” 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 target price on the stock in a report on Wednesday, January 28th. Four analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Microchip Technology currently has an average rating of “Moderate Buy” and an average target price of $97.52.

Microchip Technology Stock Down 1.0%

MCHP opened at $96.71 on Tuesday. 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 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The firm’s fifty day moving average price is $75.13 and its two-hundred day moving average price is $70.10. The company has a market capitalization of $52.33 billion, a P/E ratio of 460.55, a P/E/G ratio of 1.20 and a beta of 1.75.

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

Microchip Technology Announces Dividend

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

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares of the company’s stock, valued at approximately $878,326,345.72. The trade was a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 526,552 shares of company stock worth $47,130,465. Insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

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