Microchip Technology (NASDAQ:MCHP) Reaches New 12-Month High – Here’s Why

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price reached a new 52-week high during trading on Thursday . The company traded as high as $81.93 and last traded at $82.6280, with a volume of 7947 shares changing hands. The stock had previously closed at $80.75.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. B. Riley Financial boosted their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 12th. Wells Fargo & Company upped their price target 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. Rosenblatt Securities lifted their price objective on Microchip Technology from $80.00 to $115.00 and gave the stock a “buy” rating in a research report on Friday, February 6th. Finally, Zacks Research upgraded Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Microchip Technology has a consensus rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Down 1.9%

The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. The stock’s 50-day moving average price is $71.17 and its two-hundred day moving average price is $65.69. The stock has a market capitalization of $42.88 billion, a PE ratio of -273.25, a P/E/G ratio of 1.94 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the prior year, the company earned $0.20 earnings per share. The business’s revenue was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, February 23rd. Microchip Technology’s payout ratio is -627.59%.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 98,814 shares of the firm’s 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 completion of the transaction, the chief executive officer directly owned 9,922,319 shares in the company, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the transaction, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. The trade was a 12.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 121,615 shares of company stock valued at $9,641,654 over the last 90 days. Corporate insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC lifted its position in Microchip Technology by 51.3% in the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company’s stock valued at $827,000 after acquiring an additional 5,835 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Microchip Technology by 101.8% during the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company’s stock valued at $59,000 after purchasing an additional 616 shares in the last quarter. Johnson Investment Counsel Inc. boosted its position in shares of Microchip Technology by 4.2% during the second quarter. Johnson Investment Counsel Inc. now owns 18,168 shares of the semiconductor company’s stock valued at $1,278,000 after buying an additional 739 shares during the last quarter. CWM LLC boosted its position in shares of Microchip Technology by 27.9% during the second quarter. CWM LLC now owns 51,831 shares of the semiconductor company’s stock valued at $3,647,000 after buying an additional 11,294 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in Microchip Technology by 3.0% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 26,826 shares of the semiconductor company’s stock worth $1,923,000 after buying an additional 772 shares in the last quarter. 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.