Microchip Technology (NASDAQ:MCHP) Trading Down 7% – What’s Next?

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price dropped 7% during trading on Friday . The stock traded as low as $87.67 and last traded at $87.4860. 3,080,253 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 10,147,101 shares. The stock had previously closed at $94.12.

Analysts Set New Price Targets

Several research firms recently issued reports on MCHP. Susquehanna increased their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research report on Friday, May 8th. Truist Financial upped their target price on Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a research note on Friday, May 8th. Citigroup raised their target price on Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a report on Friday, May 8th. Wells Fargo & Company lifted their price target on Microchip Technology from $75.00 to $95.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $98.18.

Microchip Technology Stock Performance

The firm has a market capitalization of $47.67 billion, a price-to-earnings ratio of 418.73, a PEG ratio of 0.90 and a beta of 1.73. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The stock’s 50-day moving average is $93.01 and its 200-day moving average is $78.37.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company’s quarterly revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the business posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts predict that Microchip Technology Incorporated will post 2.66 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were given a dividend of $0.455 per share. The ex-dividend date was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.1%. Microchip Technology’s payout ratio is currently 866.67%.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,667 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Sanghi sold 416,581 shares of the company’s stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the transaction, the chief executive officer directly owned 9,495,805 shares of the company’s stock, valued at $840,663,616.65. This represents a 4.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 553,302 shares of company stock worth $49,673,635 in the last 90 days. 1.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds have recently added to or reduced their stakes in the business. EFG International AG bought a new position in shares of Microchip Technology during the fourth quarter valued at $29,000. Miller Capital Partners Inc. bought a new stake in shares of Microchip Technology in the fourth quarter worth $29,000. Garton & Associates Financial Advisors LLC acquired a new stake in Microchip Technology in the fourth quarter valued at $33,000. Reflection Asset Management acquired a new stake in Microchip Technology in the fourth quarter valued at $33,000. Finally, Caitong International Asset Management Co. Ltd raised its position in Microchip Technology by 4,663.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after purchasing an additional 513 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.