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

Microchip Technology Incorporated (NASDAQ:MCHP) has received a consensus recommendation of “Moderate Buy” from the twenty-four analysts that are presently covering the firm, MarketBeat Ratings reports. Eight research analysts have rated the stock with a hold rating, thirteen have given a buy rating and three have assigned a strong buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $98.6667.

Several research firms recently weighed in on MCHP. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Citigroup lowered their price objective on Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, August 7th. UBS Group reiterated 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. Cantor Fitzgerald restated an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, September 9th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $120.00 target price on shares of Microchip Technology in a research report on Friday, August 7th.

Microchip Technology Price Performance

Microchip Technology stock opened at $70.82 on Friday. The stock has a market capitalization of $38.46 billion, a P/E ratio of 105.70, a P/E/G ratio of 0.48 and a beta of 1.75. The company’s fifty day moving average price is $77.12 and its 200 day moving average price is $80.93. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. 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 quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same period in the prior year, the business posted $0.27 earnings per share. The firm’s revenue for the quarter was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts anticipate that Microchip Technology will post 3.16 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology’s dividend payout ratio is currently 271.64%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer owned 28,573 shares in the company, 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 the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of large investors have recently modified their holdings of the business. TOP Private Wealth LLC. acquired a new position in shares of Microchip Technology in the 2nd quarter valued at $29,000. Continuum Advisory LLC acquired a new stake in Microchip Technology during the 2nd quarter worth $30,000. Johnson Financial Group Inc. acquired a new stake in Microchip Technology during the 2nd quarter worth $31,000. Reflection Asset Management acquired a new position in Microchip Technology in the fourth quarter valued at $33,000. Finally, Rakuten Securities Inc. acquired a new position in Microchip Technology in the second quarter valued at $34,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated (NASDAQ: MCHP) develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.