Microchip Technology Incorporated (NASDAQ:MCHP) Receives $86.00 Average PT from Brokerages

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been assigned an average recommendation of “Moderate Buy” from the twenty-six ratings firms that are currently covering the firm, Marketbeat reports. Seven equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and four have issued a strong buy rating on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $86.00.

A number of equities analysts recently weighed in on MCHP shares. TD Cowen lowered their price objective on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating on the stock in a research report on Friday, November 7th. Wall Street Zen upgraded shares of Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. UBS Group boosted their price target on shares of Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Citigroup reduced their price objective on shares of Microchip Technology from $92.00 to $91.00 and set a “buy” rating for the company in a research report on Friday, February 6th. Finally, Wolfe Research set a $85.00 target price on Microchip Technology in a research report on Tuesday, January 6th.

Microchip Technology Trading Down 0.6%

Shares of Microchip Technology stock opened at $75.47 on Monday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. The company has a market capitalization of $40.84 billion, a P/E ratio of -260.24, a PEG ratio of 1.91 and a beta of 1.46. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $83.35. The company’s fifty day moving average is $73.39 and its two-hundred day moving average is $66.42.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Monday, February 23rd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Monday, February 23rd. Microchip Technology’s dividend payout ratio is currently -627.59%.

Insider Buying and Selling

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Several hedge funds and other institutional investors have recently made changes to their positions in MCHP. Winnow Wealth LLC acquired a new stake in shares of Microchip Technology during the 3rd quarter valued at approximately $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology in the 3rd quarter valued at approximately $28,000. EFG International AG acquired a new position in Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. purchased a new stake in Microchip Technology during the fourth quarter worth $29,000. Finally, Salomon & Ludwin LLC grew its holdings in Microchip Technology by 219.3% in the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 329 shares during the last quarter. Institutional investors and hedge funds 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.