Citigroup Has Lowered Expectations for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price target cut by Citigroup from $90.00 to $80.00 in a report released on Friday,Benzinga reports. The firm presently has a “buy” rating on the semiconductor company’s stock. Citigroup’s price objective would indicate a potential upside of 42.15% from the company’s current price.

Several other equities analysts have also recently commented on MCHP. Cantor Fitzgerald reduced their price target on shares of Microchip Technology from $70.00 to $65.00 and set a “neutral” rating on the stock in a research report on Friday. Truist Financial reaffirmed a “hold” rating and set a $60.00 target price (down previously from $64.00) on shares of Microchip Technology in a report on Friday. Wells Fargo & Company lowered their price target on Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating for the company in a report on Friday. Morgan Stanley raised their price objective on Microchip Technology from $63.00 to $68.00 and gave the stock an “equal weight” rating in a research note on Tuesday. Finally, Zacks Research downgraded shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 18th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $73.47.

Microchip Technology Stock Down 5.2%

Shares of MCHP traded down $3.07 during trading on Friday, reaching $56.28. The company’s stock had a trading volume of 18,784,524 shares, compared to its average volume of 9,684,992. The company has a market cap of $30.37 billion, a price-to-earnings ratio of -165.53, a P/E/G ratio of 1.79 and a beta of 1.57. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The company has a fifty day moving average of $64.42 and a two-hundred day moving average of $63.97. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $77.20.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.13 billion. During the same quarter in the previous year, the firm earned $0.46 earnings per share. The business’s revenue was down 2.0% compared to the same quarter last year. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. On average, sell-side analysts predict that Microchip Technology will post 1.03 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Matthew W. Chapman sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the completion of the transaction, the director directly owned 30,665 shares in the company, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 7,356 shares of the firm’s stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the sale, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This represents a 19.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. OneDigital Investment Advisors LLC lifted its stake in shares of Microchip Technology by 39.6% in the 1st quarter. OneDigital Investment Advisors LLC now owns 6,394 shares of the semiconductor company’s stock worth $310,000 after acquiring an additional 1,814 shares during the period. Stratos Wealth Partners LTD. lifted its position in Microchip Technology by 16.1% in the first quarter. Stratos Wealth Partners LTD. now owns 5,433 shares of the semiconductor company’s stock worth $263,000 after purchasing an additional 753 shares during the period. DekaBank Deutsche Girozentrale boosted its stake in Microchip Technology by 2.6% during the 1st quarter. DekaBank Deutsche Girozentrale now owns 276,157 shares of the semiconductor company’s stock valued at $13,263,000 after purchasing an additional 7,095 shares in the last quarter. Greenleaf Trust increased its position in shares of Microchip Technology by 1.0% during the 1st quarter. Greenleaf Trust now owns 24,933 shares of the semiconductor company’s stock valued at $1,207,000 after purchasing an additional 242 shares during the period. Finally, Xponance Inc. raised its stake in shares of Microchip Technology by 1.9% in the 1st quarter. Xponance Inc. now owns 83,034 shares of the semiconductor company’s stock worth $4,020,000 after buying an additional 1,515 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.