Citigroup Issues Positive Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its target price raised by Citigroup from $91.00 to $113.00 in a research note released on Friday,Benzinga reports. Citigroup currently has a buy rating on the semiconductor company’s stock.

Other equities analysts also recently issued research reports about the company. Barclays assumed coverage on Microchip Technology in a research report on Thursday, February 12th. They issued an “equal weight” rating and a $80.00 price objective for the company. Mizuho increased their target price on Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a report on Friday, February 6th. Cantor Fitzgerald raised their target price on Microchip Technology from $85.00 to $100.00 and gave the company an “overweight” rating in a research note on Monday, February 2nd. Weiss Ratings raised Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, April 24th. Finally, Zacks Research downgraded shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 24th. 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 company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $95.35.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $99.09 on Friday. The stock has a market capitalization of $53.62 billion, a price-to-earnings ratio of 471.88, a P/E/G ratio of 1.36 and a beta of 1.75. The firm’s 50-day moving average price is $73.27 and its two-hundred day moving average price is $69.20. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.76%. Microchip Technology’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts predict that Microchip Technology will post 2.14 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be given a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.8%. Microchip Technology’s dividend payout ratio is presently 866.67%.

Insider Activity

In other news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the sale, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. The trade was a 4.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 526,552 shares of company stock valued at $47,130,465. 1.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Large investors have recently bought and sold shares of the business. Winnow Wealth LLC acquired a new stake in Microchip Technology during the 3rd quarter worth $25,000. Root Financial Partners LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $28,000. EFG International AG acquired a new position in shares of Microchip Technology in the 4th quarter valued at $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the 4th quarter worth $29,000. Finally, Quent Capital LLC bought a new position in shares of Microchip Technology in the 3rd quarter worth $32,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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.