Microchip Technology (NASDAQ:MCHP) Given New $120.00 Price Target at KeyCorp

Microchip Technology (NASDAQ:MCHP) had its price objective dropped by KeyCorp from $135.00 to $120.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has an “overweight” rating on the semiconductor company’s stock. KeyCorp‘s price objective suggests a potential upside of 96.62% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the company. TD Cowen cut their price target on Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a report on Monday, October 19th. Rosenblatt Securities decreased their price objective on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Friday. BMO Capital Markets assumed coverage on shares of Microchip Technology in a research report on Friday, August 21st. They issued an “outperform” rating and a $95.00 price objective on the stock. Susquehanna dropped their price objective on shares of Microchip Technology from $120.00 to $100.00 and set a “positive” rating on the stock in a research report on Friday. Finally, UBS Group restated a “buy” rating and set a $120.00 target price (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Microchip Technology currently has a consensus rating of “Moderate Buy” and an average target price of $95.33.

Microchip Technology Price Performance

NASDAQ:MCHP opened at $61.03 on Friday. 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 stock’s 50 day moving average price is $75.19 and its two-hundred day moving average price is $79.48. The firm has a market capitalization of $33.14 billion, a price-to-earnings ratio of 91.10, a P/E/G ratio of 0.52 and a beta of 1.84. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $1.62 billion during the quarter, compared to analysts’ expectations of $1.61 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The business’s revenue was up 42.2% on a year-over-year basis. During the same period last year, the firm posted $0.35 earnings per share. On average, analysts anticipate that Microchip Technology will post 3.20 earnings per share for the current year.

Insider Transactions at Microchip Technology

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

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Microchip Technology during the 2nd quarter worth about $537,423,000. Legal & General Group Plc bought a new position in shares of Microchip Technology in the 2nd quarter worth about $312,597,000. Van ECK Associates Corp lifted its stake 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 valued at $750,102,000 after purchasing an additional 1,272,838 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $94,304,000. Finally, Pictet Asset Management Holding SA lifted its stake in shares of Microchip Technology by 30.7% in the 3rd quarter. Pictet Asset Management Holding SA now owns 4,881,363 shares of the semiconductor company’s stock valued at $379,661,000 after purchasing an additional 1,145,500 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Key Microchip Technology News

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Fiscal Q2 earnings were $0.97 per share, above the $0.94 consensus, while revenue of $1.62 billion also topped estimates and rose 42.2% year over year. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Several firms still maintain bullish ratings despite reducing their targets: Susquehanna and Cantor Fitzgerald rate MCHP positive/overweight, while Needham and Rosenblatt retain buy ratings. Their revised targets remain above the $64.85 reference price. Article: Analysts Slash Their Forecasts After Q2 Results
• Neutral Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually; the dividend provides income but is unlikely to offset concerns about the outlook.
• Negative Sentiment: December-quarter guidance is the key concern: Microchip forecast revenue ranging from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, with the guidance midpoint below analyst expectations. Article: Microchip Expects December-Quarter Revenue to Decline 3% to Grow 1%
• Negative Sentiment: Analysts cut price targets after the results, including Susquehanna ($120 to $100), Cantor Fitzgerald ($125 to $100), Needham ($120 to $85), Rosenblatt ($120 to $115), and Evercore ISI ($117 to $75). The cuts signal a more cautious outlook, even where firms maintained favorable ratings. Article: Evercore ISI Adjusts Price Target

Microchip Technology Company Profile

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.