Needham & Company LLC Has Lowered Expectations for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price target lowered by research analysts at Needham & Company LLC from $120.00 to $85.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC‘s price objective would indicate a potential upside of 45.67% from the stock’s previous close.

A number of other research firms also recently weighed in on MCHP. Rosenblatt Securities restated a “buy” rating and set a $120.00 price target on shares of Microchip Technology in a report on Friday, August 7th. Truist Financial reduced their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a report on Friday, August 7th. B. Riley Financial decreased their target price on Microchip Technology from $108.00 to $98.00 and set a “buy” rating for the company in a research report on Thursday, October 22nd. UBS Group reiterated a “buy” rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Finally, Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $91.64.

Microchip Technology Stock Performance

Shares of NASDAQ MCHP opened at $58.35 on Friday. The stock has a 50 day simple moving average of $74.85 and a 200-day simple moving average of $79.41. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The company has a market cap of $31.68 billion, a PE ratio of 44.20, a P/E/G ratio of 0.40 and a beta of 1.84. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 14.96% and a return on equity of 20.45%. Microchip Technology’s revenue was up 42.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.35 EPS. On average, equities research analysts forecast that Microchip Technology will post 3.20 EPS for the current year.

Insider Buying and Selling

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. MSH Capital Advisors LLC grew its holdings in Microchip Technology by 6.3% in the third quarter. MSH Capital Advisors LLC now owns 3,823 shares of the semiconductor company’s stock worth $297,000 after purchasing an additional 228 shares during the period. Diversified Trust Co lifted its holdings in Microchip Technology by 77.4% during the third quarter. Diversified Trust Co now owns 19,840 shares of the semiconductor company’s stock valued at $1,543,000 after purchasing an additional 8,655 shares in the last quarter. Aberdeen Group plc boosted its stake in shares of Microchip Technology by 403.4% in the third quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock worth $180,143,000 after acquiring an additional 1,856,181 shares during the period. Allworth Financial LP grew its stake in Microchip Technology by 18.8% during the third quarter. Allworth Financial LP now owns 12,342 shares of the semiconductor company’s stock valued at $960,000 after acquiring an additional 1,957 shares in the last quarter. Finally, Fisher Asset Management LLC increased its stake in Microchip Technology by 6.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,615 shares of the semiconductor company’s stock worth $281,000 after acquiring an additional 229 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Microchip Technology Company Profile