Microchip Technology (NASDAQ:MCHP) Stock Gets Price Target Cut from Wells Fargo & Company

Microchip Technology (NASDAQ:MCHP) had its target price trimmed by Wells Fargo & Company from $88.00 to $80.00 in a research note released on Tuesday morning,Benzinga reports. The firm currently has an equal weight rating on the semiconductor company’s stock.

Several other research firms have also recently commented on MCHP. TD Cowen reduced their target price on Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a research report on Monday. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, September 9th. Citigroup decreased their price objective on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Finally, UBS Group reaffirmed a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, Microchip Technology has a consensus rating of “Moderate Buy” and an average price target of $97.71.

Microchip Technology Price Performance

MCHP stock opened at $74.52 on Tuesday. The firm has a 50 day moving average of $75.19 and a 200-day moving average of $82.88. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $40.47 billion, a P/E ratio of 47.04, a price-to-earnings-growth ratio of 0.53 and a beta of 1.77. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business’s revenue for the quarter was up 38.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, sell-side analysts predict that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were given a $0.4550 dividend. The ex-dividend date was Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. Microchip Technology’s payout ratio is presently 271.64%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds have recently made changes to their positions in the business. State Street Corp grew its holdings in shares of Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock valued at $2,631,273,000 after purchasing an additional 821,147 shares during the last quarter. Van ECK Associates Corp raised its position in Microchip Technology by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock worth $750,102,000 after purchasing an additional 1,272,838 shares during the period. Artemis Wealth Advisors LLC bought a new stake in Microchip Technology in the second quarter worth $541,413,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Microchip Technology in the second quarter worth $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Microchip Technology by 23.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock valued at $461,520,000 after buying an additional 962,362 shares during the period. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.