Barclays Forecasts Strong Price Appreciation for Microchip Technology (NASDAQ:MCHP) Stock

Microchip Technology (NASDAQ:MCHP) had its target price increased by equities researchers at Barclays from $80.00 to $105.00 in a research note issued on Monday,Benzinga reports. The firm presently has an “equal weight” rating on the semiconductor company’s stock. Barclays‘s target price indicates a potential upside of 6.71% from the stock’s previous close.

A number of other brokerages also recently issued reports on MCHP. Wells Fargo & Company increased their price objective on Microchip Technology from $75.00 to $95.00 and gave the stock an “equal weight” rating in a research report on Friday. Stifel Nicolaus set a $90.00 target price on Microchip Technology in a research note on Friday, February 6th. Rosenblatt Securities raised their price target on Microchip Technology from $115.00 to $120.00 and gave the company a “buy” rating in a report on Friday. B. Riley Financial lifted their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 12th. Finally, Citigroup boosted their price objective on Microchip Technology from $91.00 to $113.00 and gave the stock a “buy” rating in a report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.43.

Microchip Technology Price Performance

NASDAQ:MCHP traded down $0.70 during mid-day trading on Monday, hitting $98.39. 972,553 shares of the stock traded hands, compared to its average volume of 9,515,991. The business’s 50-day moving average price is $73.27 and its 200 day moving average price is $69.20. The company has a market cap of $53.24 billion, a PE ratio of 471.20, a price-to-earnings-growth ratio of 1.32 and a beta of 1.75. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the prior year, the company posted $0.11 EPS. The business’s revenue for the quarter was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts expect that Microchip Technology will post 2.14 EPS for the current fiscal year.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the business’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares of the company’s stock, valued at $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 526,552 shares of company stock valued at $47,130,465 over the last ninety days. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of MCHP. PNC Financial Services Group Inc. increased its stake in Microchip Technology by 1.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 184,981 shares of the semiconductor company’s stock worth $11,952,000 after purchasing an additional 2,905 shares during the period. Oslo Pensjonsforsikring AS bought a new position in shares of Microchip Technology in the first quarter worth approximately $89,000. Andra AP fonden bought a new position in shares of Microchip Technology in the first quarter worth approximately $307,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Microchip Technology in the first quarter worth $108,000. Finally, Meeder Advisory Services Inc. raised its holdings in Microchip Technology by 11.9% during the 1st quarter. Meeder Advisory Services Inc. now owns 9,354 shares of the semiconductor company’s stock valued at $604,000 after buying an additional 995 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

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.