Wells Fargo & Company Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price objective cut by research analysts at Wells Fargo & Company from $80.00 to $70.00 in a report issued on Friday, Benzinga reports. The firm presently has an “equal weight” rating on the semiconductor company’s stock. Wells Fargo & Company‘s price target indicates a potential upside of 19.97% from the company’s current price.

Several other brokerages have also recently issued reports on MCHP. UBS Group restated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. BMO Capital Markets started coverage on shares of Microchip Technology in a research note on Friday, August 21st. They set an “outperform” rating and a $95.00 target price for the company. Rosenblatt Securities dropped their target price on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Friday. Finally, TD Cowen reduced their price target on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating on the stock in a research report on Monday, October 19th. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and an average target price of $91.64.

Microchip Technology Stock Down 10.0%

Shares of Microchip Technology stock opened at $58.35 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The firm has a market cap of $31.68 billion, a P/E ratio of 44.20, a P/E/G ratio of 0.40 and a beta of 1.84. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The business has a 50-day moving average price of $74.85 and a 200 day moving average price of $79.41.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a return on equity of 20.45% and a net margin of 14.96%. Microchip Technology’s quarterly revenue was up 42.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.35 EPS. On average, sell-side analysts forecast that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO James Bjornholt sold 4,112 shares of the firm’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 sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently modified their holdings of the company. Apella Capital LLC increased its position in shares of 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. raised its holdings in shares of 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 in the last quarter. Total Wealth Planning & Management Inc. raised its holdings in shares of Microchip Technology by 3.5% in the 2nd quarter. Total Wealth Planning & Management Inc. now owns 4,225 shares of the semiconductor company’s stock valued at $385,000 after purchasing an additional 141 shares in the last quarter. Texas Capital Bank Wealth Management Services Inc lifted its position in shares of Microchip Technology by 2.0% during the 2nd quarter. Texas Capital Bank Wealth Management Services Inc now owns 7,513 shares of the semiconductor company’s stock worth $685,000 after purchasing an additional 144 shares during the last quarter. Finally, Greenleaf Trust lifted its position in shares of Microchip Technology by 0.6% during the 2nd quarter. Greenleaf Trust now owns 24,163 shares of the semiconductor company’s stock worth $2,204,000 after purchasing an additional 151 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Key Stories Impacting Microchip Technology

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

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