Microchip Technology (NASDAQ:MCHP) Stock Price Target Lowered at Citigroup

Microchip Technology (NASDAQ:MCHP) had its price objective reduced by Citigroup from $95.00 to $75.00 in a research note released on Friday morning,Benzinga reports. They currently have a buy rating on the semiconductor company’s stock.

Other equities research analysts have also recently issued research reports about the company. KeyCorp dropped their target price on Microchip Technology from $135.00 to $120.00 and set an “overweight” rating on the stock in a report on Friday. Wells Fargo & Company dropped their price objective on Microchip Technology from $80.00 to $70.00 and set an “equal weight” rating on the stock in a research note on Friday. B. Riley Financial cut their price objective on Microchip Technology from $98.00 to $85.00 and set a “buy” rating for the company in a report on Friday. Susquehanna decreased their target price on Microchip Technology from $120.00 to $100.00 and set a “positive” rating for the company in a research note on Friday. Finally, Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $91.64.

Microchip Technology Stock Performance

Microchip Technology stock traded down $6.50 during mid-day trading on Friday, reaching $58.35. The company’s stock had a trading volume of 47,392,436 shares, compared to its average volume of 10,941,434. The business has a 50 day moving average price of $74.85 and a 200-day moving average price of $79.41. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $105.91. The firm has a market cap of $31.68 billion, a price-to-earnings ratio of 44.20, a PEG ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.03. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.61 billion. During the same quarter in the prior year, the business earned $0.35 earnings per share. Microchip Technology’s quarterly revenue was up 42.2% on a year-over-year basis. Sell-side analysts predict that Microchip Technology will post 3.20 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Monday, November 23rd will be issued a dividend of $0.4550 per share. The ex-dividend date is Monday, November 23rd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.1%. Microchip Technology’s payout ratio is currently 271.64%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were 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 in the company, valued at $2,152,118.36. This represents a 12.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. TOP Private Wealth LLC. bought a new stake in shares of Microchip Technology in the 2nd quarter valued at approximately $29,000. GK Wealth Management LLC acquired a new position in Microchip Technology during the third quarter worth $29,000. Continuum Advisory LLC acquired a new position in Microchip Technology during the second quarter worth $30,000. Johnson Financial Group Inc. bought a new position in shares of Microchip Technology during the second quarter valued at $31,000. Finally, Rakuten Securities Inc. acquired a new stake in shares of Microchip Technology in the 2nd quarter valued at $34,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Key Microchip Technology News

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Microchip Technology Company Profile