Microchip Technology Incorporated (NASDAQ:MCHP) Receives Consensus Rating of “Moderate Buy” from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has been given an average rating of “Moderate Buy” by the twenty-six research firms that are currently covering the company, Marketbeat.com reports. Eight analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and three have issued a strong buy rating on the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $86.00.

Several research analysts have recently weighed in on MCHP shares. Citigroup reduced their target price on Microchip Technology from $92.00 to $91.00 and set a “buy” rating for the company in a research note on Friday, February 6th. Morgan Stanley upped their price objective on shares of Microchip Technology from $68.00 to $69.00 and gave the stock an “equal weight” rating in a research report on Tuesday, January 6th. Cantor Fitzgerald increased their price objective on shares of Microchip Technology from $85.00 to $100.00 and gave the company an “overweight” rating in a report on Monday, February 2nd. Argus raised shares of Microchip Technology to a “strong-buy” rating in a research note on Monday, February 9th. Finally, Piper Sandler upped their price target on shares of Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a research report on Thursday, January 15th.

Microchip Technology Stock Down 0.4%

MCHP opened at $74.64 on Monday. The company has a fifty day moving average of $73.81 and a two-hundred day moving average of $66.57. The stock has a market capitalization of $40.39 billion, a price-to-earnings ratio of -257.38, a PEG ratio of 1.89 and a beta of 1.46. Microchip Technology has a fifty-two week low of $34.13 and a fifty-two week high of $83.35. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the company posted $0.20 EPS. The company’s revenue for the quarter was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be given 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 (DPR) 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 stock was 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Winnow Wealth LLC purchased a new position in shares of Microchip Technology in the third quarter worth about $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology in the 3rd quarter worth approximately $28,000. EFG International AG acquired a new position in shares of Microchip Technology during the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. purchased a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $29,000. Finally, Salomon & Ludwin LLC increased its holdings 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 valued at $32,000 after purchasing an additional 329 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

About Microchip Technology

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.