Microchip Technology (NASDAQ:MCHP) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a report published on Tuesday morning.

Several other equities analysts have also commented on MCHP. Argus upgraded shares of Microchip Technology to a “strong-buy” rating in a research report on Monday, February 9th. Barclays began coverage on shares of Microchip Technology in a research note on Thursday, February 12th. They set an “equal weight” rating and a $80.00 target price for the company. Stifel Nicolaus set a $90.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. UBS Group lifted 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 26th. Finally, Susquehanna increased their price objective on Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a report on Thursday, January 22nd. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Stock Performance

Shares of NASDAQ MCHP opened at $64.61 on Tuesday. The stock has a market capitalization of $34.96 billion, a P/E ratio of -222.79, a P/E/G ratio of 1.51 and a beta of 1.45. The firm’s 50-day moving average price is $71.84 and its two-hundred day moving average price is $66.53. Microchip Technology has a 52-week low of $34.13 and a 52-week 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.

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 business had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The business’s revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the business posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, sell-side analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Monday, February 23rd. Microchip Technology’s dividend payout ratio (DPR) is currently -627.59%.

Insider Buying and Selling

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 9,922,319 shares in the company, valued at $799,242,795.45. This represents 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 this hyperlink. 1.94% of the stock is currently owned by insiders.

Institutional Trading of Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of MCHP. Winnow Wealth LLC acquired a new position in Microchip Technology during the third quarter worth about $25,000. Root Financial Partners LLC bought a new position in shares of Microchip Technology during the 3rd quarter valued at about $28,000. EFG International AG bought a new stake in shares of Microchip Technology in the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. acquired a new stake in Microchip Technology during the fourth quarter valued at approximately $29,000. Finally, Salomon & Ludwin LLC lifted its stake 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 purchasing 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.