Microchip Technology Incorporated (NASDAQ:MCHP) Receives $86.00 Average Target Price from Brokerages

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have been given an average recommendation of “Moderate Buy” by the twenty-six research firms that are currently covering the firm, MarketBeat reports. Eight equities research analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and three have assigned a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $86.00.

A number of analysts recently weighed in on MCHP shares. Wolfe Research set a $85.00 price objective on Microchip Technology in a report on Tuesday, January 6th. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Zacks Research downgraded shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 24th. TD Cowen lowered their price target on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research report on Friday, November 7th. Finally, Argus upgraded shares of Microchip Technology to a “strong-buy” rating in a research note on Monday, February 9th.

Microchip Technology Trading Down 0.4%

Shares of Microchip Technology stock opened at $74.64 on Monday. The firm’s 50 day moving average is $73.81 and its 200 day moving average is $66.59. The firm has a market capitalization of $40.39 billion, a PE ratio of -257.38, a price-to-earnings-growth ratio of 1.88 and a beta of 1.45. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $83.35. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.01. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Equities research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Monday, February 23rd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s payout ratio is currently -627.59%.

Insider Activity

In other news, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.94% of the stock is currently owned by company insiders.

Institutional Trading of Microchip Technology

A number of institutional investors have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC purchased a new stake in shares of Microchip Technology in the third quarter worth about $25,000. Root Financial Partners LLC purchased a new stake in Microchip Technology during the third quarter valued at about $28,000. EFG International AG bought a new stake in Microchip Technology during the fourth quarter worth about $29,000. Miller Capital Partners Inc. purchased a new position in shares of Microchip Technology in the 4th quarter worth about $29,000. Finally, Salomon & Ludwin LLC increased its position in shares of Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 329 shares during the last quarter. Hedge funds and other 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.