Microchip Technology (NASDAQ:MCHP) Given Buy Rating at Rosenblatt Securities

Rosenblatt Securities reissued their buy rating on shares of Microchip Technology (NASDAQ:MCHP) in a research note published on Friday,Benzinga reports. The brokerage currently has a $120.00 price target on the semiconductor company’s stock.

Several other brokerages have also recently weighed in on MCHP. Weiss Ratings cut Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, July 24th. TD Cowen decreased their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Susquehanna boosted their price objective on Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a research report on Friday, May 8th. Citigroup raised their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Finally, UBS Group reiterated a “buy” rating on shares of Microchip Technology in a report on Tuesday, June 2nd. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.85.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $84.69 on Friday. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The stock has a market cap of $45.99 billion, a PE ratio of 403.30, a PEG ratio of 0.75 and a beta of 1.76. The company’s fifty day moving average is $87.14 and its 200 day moving average is $81.30. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same period in the prior year, the business posted $0.27 earnings per share. The company’s revenue was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Research analysts anticipate that Microchip Technology will post 2.7 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a $0.455 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.1%. Microchip Technology’s dividend payout ratio (DPR) is 866.67%.

Insider Transactions at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 26,750 shares of company stock worth $2,543,170. 1.79% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Wolverine Asset Management LLC raised its holdings in Microchip Technology by 3,833.7% in the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new stake in shares of Microchip Technology during the 4th quarter valued at $6,691,000. Epoch Investment Partners Inc. grew its position in shares of Microchip Technology by 16.5% in the 4th quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock worth $85,967,000 after buying an additional 191,339 shares during the period. Peregrine Investment Management Inc. bought a new position in shares of Microchip Technology in the 1st quarter worth about $5,492,000. Finally, Norges Bank bought a new position in shares of Microchip Technology in the 4th quarter worth about $664,564,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

More Microchip Technology News

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

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip’s data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

About Microchip Technology

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.