Microchip Technology (NASDAQ:MCHP) Updates Q2 2027 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.910-0.950 for the period, compared to the consensus EPS estimate of 0.760. The company issued revenue guidance of $1.6 billion-$1.6 billion, compared to the consensus revenue estimate of $1.5 billion.

Microchip Technology Trading Down 4.4%

Microchip Technology stock traded down $3.43 during trading hours on Thursday, reaching $74.36. 15,775,966 shares of the company’s stock traded hands, compared to its average volume of 10,577,576. The firm has a market capitalization of $40.38 billion, a price-to-earnings ratio of 354.11, a PEG ratio of 0.81 and a beta of 1.76. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The firm’s 50 day moving average is $87.77 and its 200-day moving average is $81.28.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, analysts predict that Microchip Technology will post 2.7 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on MCHP shares. Rosenblatt Securities raised their price objective on shares of Microchip Technology from $115.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Cantor Fitzgerald restated an “overweight” rating and issued a $125.00 price target on shares of Microchip Technology in a report on Monday. Truist Financial raised their price target on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a research note on Friday, May 8th. Susquehanna raised their price objective on Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a report on Friday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $99.76.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 26,750 shares of company stock worth $2,543,170. Insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. State Street Corp grew its position in shares of Microchip Technology by 2.8% in the fourth quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company’s stock valued at $1,839,153,000 after purchasing an additional 783,157 shares during the last quarter. Boston Partners boosted its stake in Microchip Technology by 9.5% in the 3rd quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after purchasing an additional 1,406,885 shares during the period. Invesco Ltd. boosted its stake in Microchip Technology by 4.8% in the 4th quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company’s stock valued at $955,298,000 after purchasing an additional 684,561 shares during the period. FIL Ltd grew its holdings in Microchip Technology by 7.2% in the 4th quarter. FIL Ltd now owns 10,445,721 shares of the semiconductor company’s stock valued at $665,601,000 after buying an additional 699,450 shares in the last quarter. Finally, Rafferty Asset Management LLC grew its holdings in Microchip Technology by 41.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company’s stock valued at $436,559,000 after buying an additional 1,803,945 shares in the last quarter. 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.