Microchip Technology Incorporated (MCHP) – What Are Brokerages Thinking About This Stock?

Microchip Technology Incorporated (NASDAQ:MCHP) has received a consensus rating of “Moderate Buy” from the twenty-four analysts that are currently covering the company, Marketbeat Ratings reports. Seven research analysts have rated the stock with a hold recommendation, fourteen have assigned a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $91.64.

A number of research firms recently issued reports on MCHP. UBS Group reiterated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Susquehanna cut their price objective on shares of Microchip Technology from $120.00 to $100.00 and set a “positive” rating for the company in a report on Friday. Wall Street Zen downgraded shares of Microchip Technology from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings upgraded Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, TD Cowen dropped their price target on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a research report on Monday, October 19th.

Insiders Place Their Bets

In other news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by insiders.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently made changes to their positions in the business. Resonant Capital Advisors LLC lifted its position in shares of Microchip Technology by 0.9% during the 1st quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock worth $810,000 after purchasing an additional 118 shares during the last quarter. Apella Capital LLC lifted its holdings in Microchip Technology by 4.8% during the second quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company’s stock valued at $225,000 after purchasing an additional 122 shares during the last quarter. Bridgewater Advisors Inc. grew its position in shares of Microchip Technology by 4.2% in the 2nd quarter. Bridgewater Advisors Inc. now owns 3,331 shares of the semiconductor company’s stock worth $304,000 after buying an additional 133 shares during the last quarter. Total Wealth Planning & Management Inc. raised its holdings in Microchip Technology by 3.5% in the 2nd quarter. Total Wealth Planning & Management Inc. now owns 4,225 shares of the semiconductor company’s stock worth $385,000 after purchasing an additional 141 shares during the period. Finally, Texas Capital Bank Wealth Management Services Inc boosted its position in Microchip Technology by 2.0% in the 2nd quarter. Texas Capital Bank Wealth Management Services Inc now owns 7,513 shares of the semiconductor company’s stock valued at $685,000 after buying an additional 144 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Microchip Technology Trading Down 10.0%

NASDAQ MCHP opened at $58.35 on Friday. The stock has a market cap of $31.68 billion, a P/E ratio of 44.20, a P/E/G ratio of 0.52 and a beta of 1.84. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a fifty day simple moving average of $74.85 and a two-hundred day simple moving average of $79.41. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, beating the consensus estimate of $0.94 by $0.03. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The firm had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same period in the prior year, the business earned $0.35 EPS. The firm’s revenue was up 42.2% compared to the same quarter last year. On average, analysts forecast that Microchip Technology will post 3.20 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Investors of record on Monday, November 23rd will be given a dividend of $0.4550 per share. The ex-dividend date is Monday, November 23rd. This represents a $1.82 annualized dividend and a dividend yield of 3.1%. Microchip Technology’s payout ratio is currently 271.64%.

Microchip Technology Company Profile