Microchip Technology (NASDAQ:MCHP) Stock Price Target Cut by Jefferies Financial Group

Microchip Technology (NASDAQ:MCHP) had its price objective lowered by research analysts at Jefferies Financial Group from $100.00 to $85.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Jefferies Financial Group‘s target price points to a potential upside of 45.67% from the stock’s current price.

Several other brokerages have also issued reports on MCHP. B. Riley Financial lowered their price target on shares of Microchip Technology from $98.00 to $85.00 and set a “buy” rating on the stock in a research note on Friday. Rosenblatt Securities cut their price target on Microchip Technology from $120.00 to $115.00 and set a “buy” rating for the company in a report on Friday. UBS Group reaffirmed a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Zacks Research lowered shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. Finally, Wells Fargo & Company dropped their price objective on Microchip Technology from $80.00 to $70.00 and set an “equal weight” rating for the company in a report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and an average price target of $91.64.

Microchip Technology Stock Down 10.0%

Shares of NASDAQ:MCHP traded down $6.50 during trading on Friday, hitting $58.35. 47,392,436 shares of the company’s stock traded hands, compared to its average volume of 10,560,582. The company has a market cap of $31.68 billion, a price-to-earnings ratio of 87.09, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The company has a 50-day moving average price of $74.85 and a 200-day moving average price of $79.41.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.03. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm’s revenue was up 42.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.35 earnings per share. As a group, research analysts forecast that Microchip Technology will post 3.20 EPS for the current fiscal year.

Insider Transactions at Microchip Technology

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

Institutional Trading of Microchip Technology

A number of hedge funds have recently added to or reduced their stakes in the stock. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Microchip Technology in the 2nd quarter valued at $537,423,000. Legal & General Group Plc bought a new stake in Microchip Technology during the 2nd quarter worth $312,597,000. Aberdeen Group plc increased its holdings in Microchip Technology by 403.4% in the 3rd quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock worth $180,143,000 after purchasing an additional 1,856,181 shares in the last quarter. Van ECK Associates Corp increased its holdings in 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 purchasing an additional 1,272,838 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in Microchip Technology in the third quarter valued at about $94,304,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

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.