Microchip Technology (NASDAQ:MCHP) Posts Quarterly Earnings Results, Hits Estimates

Microchip Technology (NASDAQ:MCHP) posted its quarterly earnings data on Monday. The semiconductor company reported $0.57 earnings per share for the quarter, meeting the consensus estimate of $0.57, Briefing.com reports. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the firm posted $1.56 EPS. The business’s revenue for the quarter was down 40.6% on a year-over-year basis. Microchip Technology updated its Q1 guidance to $0.48-0.56 EPS and its Q1 2025 guidance to 0.480-0.560 EPS.

Microchip Technology Stock Performance

NASDAQ:MCHP traded down $0.18 during mid-day trading on Thursday, reaching $91.81. 311,321 shares of the company’s stock were exchanged, compared to its average volume of 5,576,409. Microchip Technology has a one year low of $68.75 and a one year high of $96.14. The firm has a market capitalization of $49.61 billion, a PE ratio of 21.38, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. The business’s fifty day simple moving average is $88.45 and its two-hundred day simple moving average is $85.37. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd will be given a dividend of $0.452 per share. This represents a $1.81 dividend on an annualized basis and a yield of 1.97%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date is Tuesday, May 21st. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Analysts Set New Price Targets

MCHP has been the subject of several recent analyst reports. TD Cowen raised their target price on shares of Microchip Technology from $80.00 to $90.00 and gave the stock a “hold” rating in a report on Tuesday. Needham & Company LLC raised their price objective on shares of Microchip Technology from $90.00 to $100.00 and gave the company a “buy” rating in a research report on Tuesday. Citigroup raised their price objective on shares of Microchip Technology from $100.00 to $104.00 and gave the company a “buy” rating in a research report on Tuesday. Susquehanna raised their price objective on shares of Microchip Technology from $100.00 to $105.00 and gave the company a “positive” rating in a research report on Tuesday. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price objective on shares of Microchip Technology in a research report on Tuesday, January 30th. Six research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. According to MarketBeat.com, Microchip Technology presently has a consensus rating of “Moderate Buy” and an average price target of $98.47.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of the firm’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the transaction, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells 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 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.