Microchip Technology (NASDAQ:MCHP) Shares Down 7% – Time to Sell?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) were down 7% on Friday . The stock traded as low as $87.67 and last traded at $87.4860. 3,080,253 shares changed hands during trading, a decline of 70% from the average daily volume of 10,147,101 shares. The stock had previously closed at $94.12.

Analysts Set New Price Targets

A number of analysts have recently issued reports on MCHP shares. Needham & Company LLC lifted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a report on Friday, May 8th. Barclays increased their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. Truist Financial increased their price target on Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a research report on Friday, May 8th. Finally, Zacks Research raised Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Four analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $98.18.

Microchip Technology Price Performance

The business has a fifty day moving average of $92.74 and a 200 day moving average of $78.30. The firm has a market cap of $47.48 billion, a P/E ratio of 417.35, a PEG ratio of 0.95 and a beta of 1.73. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data 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 return on equity of 10.87% and a net margin of 4.88%.The business’s revenue was up 35.1% on a year-over-year basis. During the same period last year, the firm posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts anticipate that Microchip Technology Incorporated will post 2.66 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology’s dividend payout ratio is currently 866.67%.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of the stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. This trade represents a 4.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $95.48, for a total value of $954,800.00. Following the transaction, the director owned 20,665 shares in the company, valued at $1,973,094.20. The trade was a 32.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 553,302 shares of company stock worth $49,673,635 in the last ninety days. 1.94% of the stock is currently owned by company insiders.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $664,564,000. Barclays PLC increased its stake in Microchip Technology by 66.5% during the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock worth $891,881,000 after acquiring an additional 5,590,210 shares during the period. Barrow Hanley Mewhinney & Strauss LLC raised its holdings in Microchip Technology by 25.7% in the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock valued at $709,506,000 after acquiring an additional 2,257,932 shares in the last quarter. Holocene Advisors LP lifted its position in shares of Microchip Technology by 77.0% during the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company’s stock valued at $302,447,000 after acquiring an additional 2,049,249 shares during the period. Finally, Rafferty Asset Management LLC lifted its position in shares of Microchip Technology by 41.0% during the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company’s stock valued at $436,559,000 after acquiring an additional 1,803,945 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Company Profile

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.