Microchip Technology (NASDAQ:MCHP) Shares Gap Up – Time to Buy?

Microchip Technology Incorporated (NASDAQ:MCHP) shares gapped up prior to trading on Wednesday . The stock had previously closed at $56.71, but opened at $59.30. Microchip Technology shares last traded at $61.7890, with a volume of 4,015,368 shares.

Wall Street Analyst Weigh In

MCHP has been the topic of several recent research reports. Rosenblatt Securities reissued a “buy” rating and set a $80.00 price target on shares of Microchip Technology in a research report on Wednesday. Wells Fargo & Company cut their price objective on shares of Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating for the company in a research report on Friday, November 7th. Citigroup reduced their target price on shares of Microchip Technology from $90.00 to $80.00 and set a “buy” rating on the stock in a research note on Friday, November 7th. Susquehanna dropped their price target on shares of Microchip Technology from $85.00 to $75.00 and set a “positive” rating for the company in a research note on Friday, November 7th. Finally, KeyCorp restated an “overweight” rating on shares of Microchip Technology in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $74.00.

Microchip Technology Price Performance

The company has a quick ratio of 1.20, a current ratio of 2.25 and a debt-to-equity ratio of 0.80. The company has a market cap of $33.12 billion, a price-to-earnings ratio of -136.25, a PEG ratio of 1.87 and a beta of 1.47. The stock’s 50-day simple moving average is $60.17 and its 200 day simple moving average is $64.53.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same period in the previous year, the firm earned $0.46 EPS. The business’s revenue was down 2.0% on a year-over-year basis. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. On average, equities research analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 9th. Shareholders of record on Monday, November 24th will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Monday, November 24th. Microchip Technology’s dividend payout ratio is -404.44%.

Insider Activity at Microchip Technology

In other news, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the completion of the sale, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. The trade was a 12.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 1.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Winnow Wealth LLC acquired a new position in Microchip Technology in the 3rd quarter valued at about $25,000. Root Financial Partners LLC purchased a new position in shares of Microchip Technology in the third quarter valued at approximately $28,000. Salomon & Ludwin LLC grew its holdings in shares of 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 in the last quarter. Quent Capital LLC purchased a new stake in Microchip Technology during the 3rd quarter worth approximately $32,000. Finally, MCF Advisors LLC lifted its holdings in Microchip Technology by 211.2% during the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company’s stock worth $33,000 after buying an additional 321 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Microchip Technology

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.