Microchip Technology Incorporated (NASDAQ:MCHP) Receives $95.35 Average PT from Analysts

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have earned an average recommendation of “Moderate Buy” from the twenty-six research firms that are presently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fifteen have assigned a buy rating and three have given a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $96.4348.

A number of brokerages have recently issued reports on MCHP. Barclays boosted their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Monday. B. Riley Financial 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 12th. UBS Group boosted their price target on shares of Microchip Technology from $115.00 to $130.00 and gave the stock a “buy” rating in a research note on Friday. Wall Street Zen upgraded shares of Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Cantor Fitzgerald boosted their price target on shares of Microchip Technology from $85.00 to $100.00 and gave the stock an “overweight” rating in a research note on Monday, February 2nd.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $99.03 on Friday. The company has a 50-day simple moving average of $74.22 and a 200-day simple moving average of $69.65. Microchip Technology has a one year low of $48.52 and a one year high of $105.91. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The stock has a market capitalization of $53.59 billion, a price-to-earnings ratio of 471.59, a PEG ratio of 1.32 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the prior year, the company earned $0.11 earnings per share. The business’s revenue 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 predict that Microchip Technology will post 2.14 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, May 22nd. Microchip Technology’s payout ratio is 866.67%.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of the company’s stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This represents a 4.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 526,552 shares of company stock worth $47,130,465 in the last quarter. Corporate insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC acquired a new position in Microchip Technology during the third quarter worth about $25,000. Root Financial Partners LLC acquired a new stake in shares of Microchip Technology in the third quarter valued at approximately $28,000. EFG International AG acquired a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $29,000. Miller Capital Partners Inc. acquired a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $29,000. Finally, Quent Capital LLC acquired a new stake in shares of Microchip Technology in the third quarter valued at approximately $32,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

More Microchip Technology News

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

• Positive Sentiment: KeyBanc raised its price target on Microchip Technology to $135 from $85 and kept an Overweight rating, citing strong fiscal Q4 results and Q1 guidance. KeyBanc Raises its Price Target on Microchip Technology (MCHP) to $135
• Positive Sentiment: Barclays raised its price target to $105 from $80, implying additional upside, though it maintained an Equal Weight rating.
• Positive Sentiment: Several other firms also lifted targets, including JPMorgan, Truist, Citigroup, and Wells Fargo, reinforcing a broadly bullish analyst tone around MCHP.
• Positive Sentiment: Recent commentary highlighted Microchip’s earnings beat, upbeat guidance, and renewed momentum, which have helped reset expectations and support the stock’s move higher.
• Neutral Sentiment: Short interest data showed 0 shares reported as short interest as of May 11, which does not currently indicate meaningful bearish positioning.

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.