Brokerages Set Microchip Technology Incorporated (NASDAQ:MCHP) Target Price at $98.67

Microchip Technology Incorporated (NASDAQ:MCHP) has received an average recommendation of “Moderate Buy” from the twenty-four research firms that are currently covering the stock, MarketBeat Ratings reports. Eight analysts have rated the stock with a hold rating, thirteen have given a buy rating and three have given a strong buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $98.6667.

MCHP has been the subject of several recent research reports. Cantor Fitzgerald reissued an “overweight” rating on shares of Microchip Technology in a research note on Wednesday, September 9th. Rosenblatt Securities reaffirmed a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a research note on Friday, August 7th. Citigroup dropped their target price on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a report on Friday, August 7th. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, UBS Group reissued a “buy” rating and issued a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th.

Microchip Technology Price Performance

Microchip Technology stock opened at $71.49 on Friday. The company’s fifty day moving average price is $77.78 and its 200 day moving average price is $80.99. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The stock has a market capitalization of $38.82 billion, a P/E ratio of 106.70, a P/E/G ratio of 0.50 and a beta of 1.75. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm’s revenue for the quarter was up 38.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts anticipate that Microchip Technology will post 3.16 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were issued a $0.455 dividend. The ex-dividend date was Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. Microchip Technology’s dividend payout ratio is presently 271.64%.

Insider Buying and Selling

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of large investors have recently made changes to their positions in the stock. Geode Capital Management LLC boosted its stake in Microchip Technology by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company’s stock worth $977,638,000 after buying an additional 213,188 shares during the last quarter. Barclays PLC increased its stake in shares of Microchip Technology by 66.5% in the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock worth $891,881,000 after acquiring an additional 5,590,210 shares during the last quarter. Victory Capital Management Inc. increased its stake in shares of Microchip Technology by 11.4% in the 4th quarter. Victory Capital Management Inc. now owns 13,375,920 shares of the semiconductor company’s stock worth $852,317,000 after acquiring an additional 1,369,832 shares during the last quarter. Van ECK Associates Corp raised its holdings in shares of Microchip Technology by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock worth $750,102,000 after acquiring an additional 1,272,838 shares during the period. Finally, Norges Bank purchased a new position in shares of Microchip Technology during the 4th quarter worth $664,564,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated (NASDAQ: MCHP) develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.