Wells Fargo & Company Has Lowered Expectations for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its target price lowered by Wells Fargo & Company from $60.00 to $58.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an “equal weight” rating on the semiconductor company’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 3.16% from the company’s previous close.

Several other equities analysts have also recently issued reports on MCHP. Raymond James Financial upped their price target on shares of Microchip Technology from $65.00 to $75.00 and gave the company a “strong-buy” rating in a research report on Friday, August 8th. Truist Financial restated a “hold” rating and issued a $60.00 price objective (down from $64.00) on shares of Microchip Technology in a report on Friday. Stifel Nicolaus lowered their target price on Microchip Technology from $82.00 to $75.00 and set a “buy” rating for the company in a research report on Friday. Morgan Stanley upped their price target on Microchip Technology from $63.00 to $68.00 and gave the company an “equal weight” rating in a research report on Tuesday. Finally, TD Cowen lowered their price objective on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $73.47.

Microchip Technology Price Performance

MCHP traded down $3.13 on Friday, reaching $56.22. The stock had a trading volume of 14,936,327 shares, compared to its average volume of 9,676,484. Microchip Technology has a fifty-two week low of $34.13 and a fifty-two week high of $77.20. The firm has a 50-day moving average of $64.42 and a 200-day moving average of $63.97. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $30.34 billion, a price-to-earnings ratio of -165.36, a price-to-earnings-growth ratio of 1.79 and a beta of 1.57.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The company had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.13 billion. During the same period in the previous year, the business posted $0.46 earnings per share. The business’s quarterly revenue was down 2.0% compared to the same quarter last year. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. As a group, sell-side analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Insider Activity

In other Microchip Technology news, Director Matthew W. Chapman sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.25, for a total value of $682,500.00. Following the transaction, the director directly owned 30,665 shares of the company’s stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.72, for a total value of $505,504.32. Following the transaction, the chief financial officer owned 30,010 shares in the company, valued at $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Orbis Allan Gray Ltd acquired a new stake in Microchip Technology in the first quarter worth $369,612,000. Norges Bank acquired a new position in shares of Microchip Technology during the second quarter valued at about $473,320,000. Invesco Ltd. boosted its position in shares of Microchip Technology by 63.0% during the 1st quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company’s stock worth $808,787,000 after purchasing an additional 6,459,123 shares in the last quarter. Dodge & Cox grew its stake in shares of Microchip Technology by 958.4% in the 2nd quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock valued at $446,132,000 after buying an additional 5,740,827 shares during the period. Finally, Goldman Sachs Group Inc. grew its stake in shares of Microchip Technology by 138.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company’s stock valued at $427,681,000 after buying an additional 5,136,154 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Company Profile

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.