Microchip Technology (NASDAQ:MCHP) Rating Lowered to Hold at Zacks Research

Microchip Technology (NASDAQ:MCHP) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday,Zacks.com reports.

MCHP has been the subject of a number of other reports. Weiss Ratings upgraded Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Truist Financial lowered their price objective on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Friday, August 7th. Cantor Fitzgerald restated an “overweight” rating and set a $125.00 target price on shares of Microchip Technology in a research note on Monday. UBS Group reaffirmed a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Finally, TD Cowen decreased their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research note on Monday, July 13th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $98.85.

Microchip Technology Stock Down 2.6%

Shares of NASDAQ MCHP opened at $78.19 on Monday. 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 business’s 50 day moving average is $85.23 and its two-hundred day moving average is $81.54. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The firm has a market cap of $42.46 billion, a price-to-earnings ratio of 116.70, a PEG ratio of 0.62 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, topping the consensus estimate of $0.70 by $0.06. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The company’s quarterly revenue was up 38.0% on a year-over-year basis. During the same period last year, the business posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Research analysts predict that Microchip Technology will post 3.16 EPS for the current year.

Insider Activity

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Matthew W. Chapman sold 3,000 shares of Microchip Technology stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the transaction, the director owned 17,665 shares in the company, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,667 shares of company stock valued at $1,580,580 in the last ninety days. 1.79% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Continuum Advisory LLC acquired a new stake in Microchip Technology during the 2nd quarter worth approximately $30,000. Johnson Financial Group Inc. acquired a new position in shares of Microchip Technology in the second quarter valued at approximately $31,000. Rakuten Securities Inc. acquired a new position in shares of Microchip Technology in the second quarter valued at approximately $34,000. PenderFund Capital Management Ltd. purchased a new stake in shares of Microchip Technology during the second quarter worth approximately $36,000. Finally, EFG International AG acquired a new stake in shares of Microchip Technology during the fourth quarter worth $29,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.