Microchip Technology (NASDAQ:MCHP) Issues Quarterly Earnings Results

Microchip Technology (NASDAQ:MCHP) posted its earnings results on Tuesday. The semiconductor company reported $0.46 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03, Briefing.com reports. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the previous year, the firm earned $1.54 EPS. The company’s quarterly revenue was down 48.4% compared to the same quarter last year. Microchip Technology updated its Q3 guidance to $0.25-0.35 EPS and its Q3 2025 guidance to 0.250-0.350 EPS.

Microchip Technology Trading Up 0.8 %

Shares of MCHP traded up $0.59 during trading hours on Thursday, hitting $74.34. The company had a trading volume of 7,232,164 shares, compared to its average volume of 5,966,145. Microchip Technology has a 52-week low of $71.76 and a 52-week high of $100.57. The company has a quick ratio of 1.08, a current ratio of 1.94 and a debt-to-equity ratio of 0.96. The stock’s 50 day moving average price is $77.05 and its 200 day moving average price is $85.12. The firm has a market cap of $39.88 billion, a P/E ratio of 51.99 and a beta of 1.53.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 22nd will be given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.45%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, November 22nd. Microchip Technology’s dividend payout ratio is presently 126.57%.

Wall Street Analyst Weigh In

MCHP has been the subject of several recent analyst reports. TD Cowen reduced their price objective on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a research note on Wednesday. B. Riley decreased their price target on shares of Microchip Technology from $110.00 to $103.00 and set a “buy” rating on the stock in a report on Friday, August 2nd. Rosenblatt Securities reiterated a “buy” rating and issued a $90.00 price objective on shares of Microchip Technology in a research report on Wednesday. Jefferies Financial Group reduced their target price on Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, KeyCorp dropped their price target on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Wednesday. Six analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $92.00.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the transaction, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at $2,710,445.50. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.10% of the stock is currently owned by company insiders.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.