Microchip Technology (NASDAQ:MCHP) Downgraded by Zacks Research to Hold

Zacks Research downgraded shares of Microchip Technology (NASDAQ:MCHP) from a strong-buy rating to a hold rating in a report published on Tuesday morning,Zacks.com reports.

Several other equities research analysts also recently weighed in on the stock. Morgan Stanley raised their price target on shares of Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 6th. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. TD Cowen decreased their price target on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research note on Friday, November 7th. KeyCorp reaffirmed an “overweight” rating and set a $85.00 price target on shares of Microchip Technology in a report on Friday, February 6th. Finally, Mizuho increased their price objective on Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a research report on Friday, February 6th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $75.47 on Tuesday. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $83.35. The firm’s 50-day moving average is $73.39 and its 200 day moving average is $66.42. The stock has a market cap of $40.84 billion, a price-to-earnings ratio of -260.24, a PEG ratio of 1.91 and a beta of 1.46. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. Microchip Technology’s revenue was up 15.6% compared to the same quarter last year. During the same period last year, the business earned $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Sell-side analysts anticipate that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be paid a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s dividend payout ratio is -627.59%.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the completion of the sale, the chief executive officer directly owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Winnow Wealth LLC bought a new stake in shares of Microchip Technology during the 3rd quarter valued at $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology during the third quarter valued at $28,000. EFG International AG bought a new stake in Microchip Technology during the fourth quarter valued at about $29,000. Miller Capital Partners Inc. purchased a new stake in Microchip Technology in the fourth quarter worth about $29,000. Finally, Salomon & Ludwin LLC raised its stake in shares of Microchip Technology by 219.3% in the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after buying an additional 329 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.