Microchip Technology (NASDAQ:MCHP) Given New $62.00 Price Target at Truist Financial

Microchip Technology (NASDAQ:MCHP) had its target price lowered by Truist Financial from $90.00 to $62.00 in a research note released on Friday morning,Benzinga reports. The brokerage currently has a hold rating on the semiconductor company’s stock.

MCHP has been the subject of several other reports. Susquehanna lowered their price objective on Microchip Technology from $120.00 to $100.00 and set a “positive” rating for the company in a research note on Friday. TD Cowen reduced their target price on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating on the stock in a report on Monday, October 19th. Citigroup cut their price target on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, August 7th. B. Riley Financial cut their price objective on shares of Microchip Technology from $98.00 to $85.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Rosenblatt Securities reduced their price target on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Friday. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $91.64.

Microchip Technology Price Performance

Shares of MCHP stock traded down $6.50 during trading hours on Friday, reaching $58.35. The company’s stock had a trading volume of 47,392,436 shares, compared to its average volume of 10,941,434. The company has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a PEG ratio of 0.52 and a beta of 1.84. 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’s 50 day simple moving average is $74.85 and its 200-day simple moving average is $79.41. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03. The business had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. Microchip Technology’s quarterly revenue was up 42.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS. Sell-side analysts forecast that Microchip Technology will post 3.20 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Monday, November 23rd will be issued a $0.4550 dividend. The ex-dividend date of this dividend is Monday, November 23rd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.1%. Microchip Technology’s dividend payout ratio (DPR) is currently 271.64%.

Insiders Place Their Bets

In related news, CFO James Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at $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 SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

Several large investors have recently made changes to their positions in the company. Private Capital Advisors Inc. acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $21,230,000. Viking Fund Management LLC purchased a new position in Microchip Technology in the 3rd quarter valued at approximately $8,555,000. Junto Capital Management LP purchased a new position in shares of Microchip Technology during the 2nd quarter worth approximately $38,537,000. Hsbc Holdings PLC lifted its stake in shares of Microchip Technology by 13.0% during the first quarter. Hsbc Holdings PLC now owns 1,160,129 shares of the semiconductor company’s stock valued at $74,649,000 after buying an additional 133,813 shares during the period. Finally, LGT Fund Management Co Ltd. acquired a new position in shares of Microchip Technology during the 1st quarter valued at about $3,428,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Microchip Technology Company Profile