Microchip Technology (NASDAQ:MCHP) Price Target Raised to $105.00

Microchip Technology (NASDAQ:MCHP) had its price objective hoisted by Truist Financial from $69.00 to $105.00 in a research note published on Friday,Benzinga reports. They currently have a hold rating on the semiconductor company’s stock.

MCHP has been the topic of several other research reports. Susquehanna boosted their target price on Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a research note on Friday. KeyCorp restated an “overweight” rating and issued a $85.00 target price on shares of Microchip Technology in a research note on Friday, February 6th. Cantor Fitzgerald boosted 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. Citigroup cut their target price on Microchip Technology from $92.00 to $91.00 and set a “buy” rating on the stock in a research note on Friday, February 6th. Finally, Piper Sandler boosted their target price on Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $95.35.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $99.09 on Friday. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The stock has a market capitalization of $53.62 billion, a PE ratio of 471.88, a price-to-earnings-growth ratio of 1.32 and a beta of 1.75. The business’s 50-day simple moving average is $73.27 and its 200-day simple moving average is $69.20.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology’s revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Sell-side analysts expect that Microchip Technology will post 2.14 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be paid 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 dividend yield of 1.8%. Microchip Technology’s dividend payout ratio is currently 866.67%.

Insider Activity

In other news, CEO Steve Sanghi sold 76,469 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the sale, the chief executive officer owned 9,385,834 shares in the company, valued at $878,326,345.72. This represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 526,552 shares of company stock worth $47,130,465. Corporate insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently made changes to their positions in MCHP. Wolverine Asset Management LLC increased its holdings in shares of Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock worth $2,416,000 after acquiring an additional 36,957 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Microchip Technology by 2.1% during the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock worth $4,628,692,000 after acquiring an additional 1,507,554 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Microchip Technology by 13.5% during the 3rd quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company’s stock worth $13,447,000 after acquiring an additional 24,963 shares during the last quarter. Natixis Advisors LLC increased its holdings in shares of Microchip Technology by 18.7% during the 3rd quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company’s stock worth $79,184,000 after acquiring an additional 194,048 shares during the last quarter. Finally, CIBC Private Wealth Group LLC increased its holdings in shares of Microchip Technology by 18.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,470,059 shares of the semiconductor company’s stock worth $94,407,000 after acquiring an additional 226,078 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Key Stories Impacting 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.