Microchip Technology (NASDAQ:MCHP) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a research report sent to investors on Monday.

A number of other equities research analysts also recently commented on the company. Wolfe Research set a $85.00 target price on Microchip Technology in a research report on Tuesday, January 6th. Weiss Ratings raised Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 6th. Piper Sandler boosted their price objective on shares of Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a report on Thursday, January 15th. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price on the stock in a research report on Thursday, January 22nd. Finally, Mizuho increased their target price on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research note on Friday, February 6th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $86.00.

Microchip Technology Stock Performance

Microchip Technology stock opened at $65.16 on Monday. The firm has a 50 day simple moving average of $72.76 and a 200-day simple moving average of $66.58. The stock has a market cap of $35.26 billion, a price-to-earnings ratio of -224.69, a price-to-earnings-growth ratio of 1.65 and a beta of 1.45. 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 has a 1-year low of $34.13 and a 1-year high of $83.35.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating 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 firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the company earned $0.20 EPS. The business’s revenue for the quarter was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were paid a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. Microchip Technology’s payout ratio is presently -627.59%.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This represents a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Winnow Wealth LLC acquired a new position in shares of Microchip Technology in the third quarter valued at approximately $25,000. Root Financial Partners LLC purchased a new stake in Microchip Technology during the 3rd quarter worth approximately $28,000. EFG International AG acquired a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. purchased a new position in Microchip Technology in the 4th quarter valued at approximately $29,000. Finally, Salomon & Ludwin LLC boosted its position in Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after buying an additional 329 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

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.