Wall Street Zen Downgrades Microchip Technology (NASDAQ:MCHP) to Hold

Microchip Technology (NASDAQ:MCHP) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

Several other analysts also recently commented on the stock. TD Cowen reduced their target price on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a report on Friday, November 7th. Barclays started coverage on shares of Microchip Technology in a report on Thursday, February 12th. They issued an “equal weight” rating and a $80.00 price target on the stock. Citigroup cut their price objective on shares of Microchip Technology from $92.00 to $91.00 and set a “buy” rating for the company in a research report on Friday, February 6th. KeyCorp restated an “overweight” rating and set a $85.00 price objective on shares of Microchip Technology in a report on Friday, February 6th. Finally, Argus raised Microchip Technology to a “strong-buy” rating in a research report on Monday, February 9th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average target price of $86.00.

Microchip Technology Stock Down 4.4%

MCHP opened at $64.82 on Friday. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $83.35. The stock’s fifty day simple moving average is $74.23 and its 200 day simple moving average is $66.73. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. The stock has a market cap of $35.08 billion, a PE ratio of -223.52, a price-to-earnings-growth ratio of 1.63 and a beta of 1.45.

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, beating the consensus estimate 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 the consensus estimate of $1.19 billion. During the same quarter last year, the firm posted $0.20 EPS. The company’s quarterly revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction dated 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 completion of 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Microchip Technology by 2.1% in the third quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock worth $4,628,692,000 after purchasing an additional 1,507,554 shares during the period. Boston Partners lifted its position in Microchip Technology by 38.0% during the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock worth $1,040,114,000 after purchasing an additional 4,076,112 shares during the period. PNC Financial Services Group Inc. grew its stake in Microchip Technology by 13.5% during the third quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company’s stock worth $13,447,000 after buying an additional 24,963 shares in the last quarter. Assenagon Asset Management S.A. grew its stake in Microchip Technology by 498.0% during the third quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock worth $130,675,000 after buying an additional 1,694,533 shares in the last quarter. Finally, Voya Investment Management LLC increased its holdings in Microchip Technology by 37.2% in the 3rd quarter. Voya Investment Management LLC now owns 3,361,581 shares of the semiconductor company’s stock valued at $215,881,000 after buying an additional 911,731 shares during the period. 91.51% of the stock is owned by institutional investors.

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.