Microchip Technology (NASDAQ:MCHP) Upgraded at BMO Capital Markets

Microchip Technology (NASDAQ:MCHP) was upgraded by equities research analysts at BMO Capital Markets to a “strong-buy” rating in a research report issued on Thursday,Zacks.com reports.

Several other equities research analysts have also recently commented on MCHP. TD Cowen cut their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Wells Fargo & Company decreased their price target on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research note on Monday, July 20th. JPMorgan Chase & Co. lifted their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a report on Friday, May 8th. Cantor Fitzgerald reissued an “overweight” rating and issued a $125.00 price objective on shares of Microchip Technology in a research report on Monday, August 17th. Finally, Needham & Company LLC boosted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $98.67.

Microchip Technology Stock Performance

MCHP opened at $76.08 on Thursday. The company has a market capitalization of $41.31 billion, a price-to-earnings ratio of 113.55, a P/E/G ratio of 0.53 and a beta of 1.76. The business’s 50-day moving average price is $84.29 and its two-hundred day moving average price is $81.49. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11.

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

Insider Activity at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the sale, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. This represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO James Eric Bjornholt sold 837 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $80.26, for a total value of $67,177.62. Following the sale, the chief financial officer owned 30,960 shares in the company, valued at approximately $2,484,849.60. This represents a 2.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 8,837 shares of company stock valued at $847,338. Insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently added to or reduced their stakes in the company. EFG International AG bought a new stake in Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the 4th quarter valued at about $29,000. Continuum Advisory LLC bought a new position in shares of Microchip Technology in the 2nd quarter valued at about $30,000. Johnson Financial Group Inc. bought a new position in shares of Microchip Technology in the 2nd quarter valued at about $31,000. Finally, Reflection Asset Management acquired a new position in shares of Microchip Technology during the 4th quarter worth about $33,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.