Microchip Technology (NASDAQ:MCHP) Downgraded to Hold Rating by Zacks Research

Microchip Technology (NASDAQ:MCHP) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Needham & Company LLC upped their price target on shares of Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. Jefferies Financial Group reiterated a “hold” rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Wells Fargo & Company increased their price target on shares of Microchip Technology from $68.00 to $70.00 and gave the company an “equal weight” rating in a report on Friday, February 6th. Weiss Ratings upgraded shares of Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 6th. Finally, Stifel Nicolaus set a $90.00 price objective on Microchip Technology in a research report on Friday, February 6th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Performance

Microchip Technology stock opened at $75.47 on Tuesday. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $83.35. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. The company has a market capitalization of $40.84 billion, a P/E ratio of -260.24, a PEG ratio of 1.91 and a beta of 1.46. The stock’s 50 day moving average is $73.39 and its 200 day moving average is $66.42.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The business had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the previous year, the business earned $0.20 earnings per share. The firm’s quarterly 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. On average, equities research analysts predict that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

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 value of $7,959,467.70. Following 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 position. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Winnow Wealth LLC bought a new stake in shares of Microchip Technology during the 3rd quarter valued at about $25,000. Root Financial Partners LLC purchased a new position in shares of Microchip Technology in the third quarter worth approximately $28,000. EFG International AG purchased a new position in shares of Microchip Technology in the fourth quarter worth approximately $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology during the fourth quarter valued at approximately $29,000. Finally, Salomon & Ludwin LLC increased its holdings in Microchip Technology by 219.3% during the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after buying an additional 329 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

About Microchip Technology

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.