Microchip Technology (NASDAQ:MCHP) Stock Price Target Lowered at Wells Fargo & Company

Microchip Technology (NASDAQ:MCHP) had its price objective cut by investment analysts at Wells Fargo & Company from $80.00 to $70.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has an “equal weight” rating on the semiconductor company’s stock. Wells Fargo & Company‘s price objective suggests a potential upside of 21.73% from the company’s previous close.

MCHP has been the topic of several other research reports. B. Riley Financial decreased their target price on Microchip Technology from $98.00 to $85.00 and set a “buy” rating on the stock in a research note on Friday. BMO Capital Markets assumed coverage on Microchip Technology in a research note on Friday, August 21st. They issued an “outperform” rating and a $95.00 price target for the company. TD Cowen dropped their price target on Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a research note on Monday, October 19th. Cantor Fitzgerald cut their price objective on shares of Microchip Technology from $125.00 to $100.00 and set an “overweight” rating for the company in a report on Friday. Finally, Rosenblatt Securities reduced their price objective on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $94.24.

Microchip Technology Price Performance

MCHP stock traded down $7.35 during trading on Friday, reaching $57.50. The company’s stock had a trading volume of 9,861,596 shares, compared to its average volume of 10,363,474. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The company’s fifty day moving average is $75.19 and its 200-day moving average is $79.48. The company has a market capitalization of $31.23 billion, a P/E ratio of 85.78, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, beating the consensus estimate of $0.94 by $0.03. The business had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The business’s revenue was up 42.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.35 earnings per share. On average, research analysts expect that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently added to or reduced their stakes in MCHP. Eurizon Capital SGR S.p.A. grew its holdings in shares of Microchip Technology by 7.3% in the third quarter. Eurizon Capital SGR S.p.A. now owns 74,504 shares of the semiconductor company’s stock valued at $5,797,000 after purchasing an additional 5,057 shares in the last quarter. Gagnon Securities LLC raised its stake in Microchip Technology by 1.3% during the third quarter. Gagnon Securities LLC now owns 26,577 shares of the semiconductor company’s stock valued at $2,067,000 after purchasing an additional 348 shares in the last quarter. Jacobi Capital Management LLC purchased a new stake in Microchip Technology during the third quarter valued at $103,000. First Command Advisory Services Inc. raised its stake in Microchip Technology by 413.5% during the third quarter. First Command Advisory Services Inc. now owns 4,688 shares of the semiconductor company’s stock valued at $365,000 after purchasing an additional 3,775 shares in the last quarter. Finally, Bahl & Gaynor LLC lifted its position in Microchip Technology by 35.6% during the third quarter. Bahl & Gaynor LLC now owns 16,160 shares of the semiconductor company’s stock valued at $1,257,000 after purchasing an additional 4,240 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology News Roundup

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

• Positive Sentiment: Fiscal Q2 earnings were $0.97 per share, above the $0.94 consensus, while revenue of $1.62 billion also topped estimates and rose 42.2% year over year. Article: Microchip Technology Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Several firms still maintain bullish ratings despite reducing their targets: Susquehanna and Cantor Fitzgerald rate MCHP positive/overweight, while Needham and Rosenblatt retain buy ratings. Their revised targets remain above the $64.85 reference price. Article: Analysts Slash Their Forecasts After Q2 Results
• Neutral Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually; the dividend provides income but is unlikely to offset concerns about the outlook.
• Negative Sentiment: December-quarter guidance is the key concern: Microchip forecast revenue ranging from a 3% decline to 1% growth and non-GAAP EPS of $0.87–$0.95, with the guidance midpoint below analyst expectations. Article: Microchip Expects December-Quarter Revenue to Decline 3% to Grow 1%
• Negative Sentiment: Analysts cut price targets after the results, including Susquehanna ($120 to $100), Cantor Fitzgerald ($125 to $100), Needham ($120 to $85), Rosenblatt ($120 to $115), and Evercore ISI ($117 to $75). The cuts signal a more cautious outlook, even where firms maintained favorable ratings. Article: Evercore ISI Adjusts Price Target

About Microchip Technology

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.