Wells Fargo & Company Cuts Microchip Technology (NASDAQ:MCHP) Price Target to $88.00

Microchip Technology (NASDAQ:MCHP) had its price target decreased by Wells Fargo & Company from $95.00 to $88.00 in a research report released on Monday,Benzinga reports. Wells Fargo & Company currently has an equal weight rating on the semiconductor company’s stock.

Several other equities analysts have also recently commented on MCHP. Cantor Fitzgerald restated an “overweight” rating and set a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. TD Cowen dropped their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Monday, July 13th. UBS Group reissued a “buy” rating on shares of Microchip Technology in a report on Tuesday, June 2nd. Citigroup upped their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Finally, Zacks Research raised shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $99.76.

Microchip Technology Stock Performance

Microchip Technology stock opened at $85.02 on Monday. The firm’s 50 day simple moving average is $91.26 and its 200 day simple moving average is $80.99. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The firm has a market capitalization of $46.17 billion, a PE ratio of 404.88, a price-to-earnings-growth ratio of 0.84 and a beta of 1.74. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same period last year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, analysts expect that Microchip Technology will post 2.7 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

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

Insider Transactions at Microchip Technology

In related news, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $93.44, for a total transaction of $467,200.00. Following the transaction, the chief operating officer directly owned 135,508 shares of the company’s stock, valued at approximately $12,661,867.52. This trade represents a 3.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 3,667 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,596,428.51. The trade was a 11.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,721 shares of company stock valued at $12,793,719 over the last quarter. 1.79% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Abound Wealth Management lifted its holdings in shares of Microchip Technology by 109.8% in the 2nd quarter. Abound Wealth Management now owns 1,114 shares of the semiconductor company’s stock worth $102,000 after acquiring an additional 583 shares during the last quarter. Accel Wealth Management purchased a new stake in shares of Microchip Technology in the 2nd quarter valued at $347,000. Tema ETFs LLC boosted its stake in shares of Microchip Technology by 9.8% in the 2nd quarter. Tema ETFs LLC now owns 11,393 shares of the semiconductor company’s stock valued at $1,039,000 after purchasing an additional 1,015 shares in the last quarter. Handelsbanken Fonder AB grew its holdings in shares of Microchip Technology by 15.8% during the 2nd quarter. Handelsbanken Fonder AB now owns 289,566 shares of the semiconductor company’s stock valued at $26,408,000 after purchasing an additional 39,412 shares during the last quarter. Finally, City Holding Co. grew its holdings in shares of Microchip Technology by 4.0% during the 2nd quarter. City Holding Co. now owns 26,614 shares of the semiconductor company’s stock valued at $2,427,000 after purchasing an additional 1,019 shares during the last quarter. 91.51% of the stock is 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.