Rosenblatt Securities Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its target price cut by investment analysts at Rosenblatt Securities from $120.00 to $115.00 in a report released on Friday, Benzinga reports. The firm currently has a “buy” rating on the semiconductor company’s stock. Rosenblatt Securities‘s price target suggests a potential upside of 77.33% from the stock’s previous close.

A number of other analysts have also recently issued reports on MCHP. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. BMO Capital Markets began coverage on Microchip Technology in a research report on Friday, August 21st. They issued an “outperform” rating and a $95.00 target price for the company. 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, October 19th. Cantor Fitzgerald decreased their price target on shares of Microchip Technology from $125.00 to $100.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Needham & Company LLC lowered their price target on shares of Microchip Technology from $120.00 to $85.00 and set a “buy” rating on the stock in a report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and an average price target of $94.62.

Microchip Technology Trading Down 13.9%

Shares of MCHP opened at $64.85 on Friday. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. 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 capitalization of $35.21 billion, a price-to-earnings ratio of 96.79, a P/E/G ratio of 0.52 and a beta of 1.84. The stock’s 50-day moving average price is $75.19 and its 200 day moving average price is $79.48.

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

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently modified their holdings of MCHP. Eurizon Capital SGR S.p.A. raised its stake in Microchip Technology by 7.3% during the third quarter. Eurizon Capital SGR S.p.A. now owns 74,504 shares of the semiconductor company’s stock worth $5,797,000 after acquiring an additional 5,057 shares in the last quarter. Gagnon Securities LLC lifted its holdings in shares of Microchip Technology by 1.3% during the third quarter. Gagnon Securities LLC now owns 26,577 shares of the semiconductor company’s stock valued at $2,067,000 after acquiring an additional 348 shares during the period. Jacobi Capital Management LLC bought a new position in shares of Microchip Technology during the third quarter valued at $103,000. First Command Advisory Services Inc. lifted its holdings in shares of Microchip Technology by 413.5% during the third quarter. First Command Advisory Services Inc. now owns 4,688 shares of the semiconductor company’s stock valued at $365,000 after acquiring an additional 3,775 shares during the period. Finally, Bahl & Gaynor LLC boosted its stake in shares of Microchip Technology by 35.6% in the 3rd quarter. Bahl & Gaynor LLC now owns 16,160 shares of the semiconductor company’s stock valued at $1,257,000 after purchasing an additional 4,240 shares in the last quarter. Institutional investors 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: For the quarter ended September 30, Microchip reported $0.97 per share versus analysts’ $0.94 estimate, and revenue of $1.62 billion versus $1.61 billion expected. EPS was up from $0.35 a year earlier, marking a sixth consecutive earnings beat. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: The company forecast December-quarter revenue ranging from a 3% decline to 1% growth, with non-GAAP EPS of $0.87–$0.95. Reports characterized the guidance as below consensus, tempering the positive impact of the quarterly beat and pointing to limited near-term momentum. Article: Microchip December-Quarter Outlook

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.