Microchip Technology (NASDAQ:MCHP) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a research note published on Sunday morning.

Other equities research analysts have also recently issued reports about the company. B. Riley Financial upped their price target on Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, January 12th. Wells Fargo & Company raised their price objective on Microchip Technology from $68.00 to $70.00 and gave the company an “equal weight” rating in a research report on Friday, February 6th. Morgan Stanley boosted their target price on shares of Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a report on Tuesday, January 6th. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price on the stock in a research report on Thursday, January 22nd. Finally, Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a research report on Wednesday, February 4th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $86.00.

Microchip Technology Trading Up 1.2%

Shares of MCHP opened at $64.59 on Friday. The firm’s 50-day moving average price is $73.94 and its 200-day moving average price is $66.60. The firm has a market capitalization of $34.95 billion, a price-to-earnings ratio of -222.72, a PEG ratio of 1.61 and a beta of 1.45. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $83.35.

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

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Monday, February 23rd. Microchip Technology’s payout ratio is presently -627.59%.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.94% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently bought and sold shares of MCHP. Winnow Wealth LLC purchased a new position in shares of Microchip Technology during the third quarter valued at approximately $25,000. Root Financial Partners LLC bought a new position in Microchip Technology during the third quarter valued at approximately $28,000. EFG International AG purchased a new stake in Microchip Technology in the fourth quarter worth approximately $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology in the 4th quarter worth approximately $29,000. Finally, Salomon & Ludwin LLC grew its position in Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 329 shares during the period. Institutional investors 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.