Microchip Technology Incorporated (NASDAQ:MCHP) Stock Has Consensus Target Price of $97.71

Microchip Technology Incorporated (NASDAQ:MCHP) has been assigned a consensus rating of “Moderate Buy” from the twenty-four analysts that are currently covering the company, Marketbeat.com reports. Eight investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and three have issued a strong buy rating on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $97.71.

A number of research firms have weighed in on MCHP. Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Rosenblatt Securities reaffirmed a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a report on Friday, August 7th. UBS Group reissued a “buy” rating and issued a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Truist Financial dropped their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research note on Friday, August 7th. Finally, B. Riley Financial cut their price objective on Microchip Technology from $108.00 to $98.00 and set a “buy” rating for the company in a report on Thursday, October 22nd.

Microchip Technology Trading Down 1.6%

MCHP opened at $76.11 on Friday. The firm has a market capitalization of $41.33 billion, a price-to-earnings ratio of 113.60, a PEG ratio of 0.55 and a beta of 1.77. The company’s 50 day moving average price is $75.26 and its two-hundred day moving average price is $79.51. 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 has a fifty-two week low of $48.52 and a fifty-two week high of $105.91.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion for 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 revenue was up 38.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, research analysts predict that Microchip Technology will post 3.20 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were paid a $0.4550 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. Microchip Technology’s dividend payout ratio is 271.64%.

Insider Activity at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

Several institutional investors have recently added to or reduced their stakes in the business. State Street Corp boosted its position in Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock valued at $2,631,273,000 after buying an additional 821,147 shares during the period. Van ECK Associates Corp grew its position in shares of Microchip Technology by 18.3% in the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock worth $750,102,000 after buying an additional 1,272,838 shares during the last quarter. Artemis Wealth Advisors LLC bought a new stake in shares of Microchip Technology in the 2nd quarter worth approximately $541,413,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Microchip Technology during the second quarter valued at approximately $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Microchip Technology by 23.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock valued at $461,520,000 after buying an additional 962,362 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Microchip Technology

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.