Microchip Technology (NASDAQ:MCHP) Given New $90.00 Price Target at Truist Financial

Microchip Technology (NASDAQ:MCHP) had its price target decreased by research analysts at Truist Financial from $105.00 to $90.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a “hold” rating on the semiconductor company’s stock. Truist Financial’s price target points to a potential upside of 8.61% from the stock’s current price.

A number of other equities analysts have also recently issued reports on MCHP. Susquehanna raised their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a report on Friday, May 8th. Citigroup boosted their price objective on Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Weiss Ratings lowered Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, July 24th. UBS Group reiterated a “buy” rating on shares of Microchip Technology in a research report on Friday. Finally, Wells Fargo & Company lowered their price objective on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating on the stock in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Microchip Technology currently has a consensus rating of “Moderate Buy” and an average target price of $99.05.

Microchip Technology Stock Up 11.4%

MCHP stock opened at $82.86 on Friday. The firm has a market cap of $45.00 billion, a price-to-earnings ratio of 387.60, a PEG ratio of 0.78 and a beta of 1.76. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The firm has a fifty day moving average price of $87.34 and a two-hundred day moving average price of $81.28. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $1.46 billion. During the same period last year, the firm posted $0.27 EPS. The company’s revenue for the quarter was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Research analysts predict that Microchip Technology will post 2.7 EPS for the current year.

Insider Activity at Microchip Technology

In other Microchip Technology news, Director Matthew W. Chapman sold 3,000 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company’s stock, valued at $1,722,690.80. The trade was a 14.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at $12,727,140.16. The trade was a 3.69% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 26,750 shares of company stock valued at $2,543,170. Insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Resonant Capital Advisors LLC increased its position in Microchip Technology by 0.9% during the first quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock worth $810,000 after purchasing an additional 118 shares during the last quarter. Apella Capital LLC boosted its holdings in Microchip Technology by 4.8% in the 2nd quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company’s stock valued at $225,000 after purchasing an additional 122 shares during the last quarter. Bridgewater Advisors Inc. boosted its holdings in Microchip Technology by 4.2% in the 2nd quarter. Bridgewater Advisors Inc. now owns 3,331 shares of the semiconductor company’s stock valued at $304,000 after purchasing an additional 133 shares during the last quarter. MCF Advisors LLC grew its stake in shares of Microchip Technology by 25.8% in the 4th quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after buying an additional 135 shares during the period. Finally, Gagnon Securities LLC grew its stake in shares of Microchip Technology by 0.5% in the 4th quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company’s stock valued at $1,731,000 after buying an additional 137 shares during the period. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology News Roundup

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

• Positive Sentiment: Microchip exceeded quarterly expectations, reporting adjusted EPS of $0.76 versus the $0.70 consensus and revenue of $1.48 billion versus $1.46 billion. Revenue increased 38% year over year, while EPS rose substantially from $0.27 in the prior-year period. Microchip Technology earnings report
• Positive Sentiment: The company’s fiscal second-quarter outlook was well above Wall Street expectations. Microchip guided to EPS of $0.91–$0.95 versus a $0.76 consensus and revenue of approximately $1.6 billion versus estimates near $1.5 billion. Management cited strengthening demand for chips used in AI data centers, industrial equipment, automotive applications and aerospace. Reuters: Microchip forecasts upbeat quarterly revenue
• Positive Sentiment: Analyst coverage highlighted potential operating leverage as sales recover. Microchip’s alliance with Micron, involving PCIe Gen 6 switches and SSD solutions, could improve its position in AI data-center infrastructure and increase competition with Broadcom and Astera Labs. Zacks: Microchip and Micron alliance
• Neutral Sentiment: The earnings presentation and call emphasized the recovery trajectory, demand trends and margin potential, giving investors more detail on how quickly the improved revenue environment may translate into profits. Microchip Technology Q1 2027 earnings call transcript
• Negative Sentiment: Despite the favorable results, investors may be taking profits or questioning how much of the recovery is already reflected in the share price. Microchip’s elevated valuation, including a reported P/E above 350, leaves limited room for execution disappointments. The key issue is whether operating leverage can justify the premium investors are paying. Seeking Alpha: Microchip operating leverage and valuation

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.