Microchip Technology (NASDAQ:MCHP) Stock Price Target Cut by B. Riley Financial

Microchip Technology (NASDAQ:MCHP) had its price target lowered by stock analysts at B. Riley Financial from $98.00 to $85.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. B. Riley Financial‘s price objective would indicate a potential upside of 45.67% from the company’s current price.

MCHP has been the topic of several other research reports. Cantor Fitzgerald dropped their price target on shares of Microchip Technology from $125.00 to $100.00 and set an “overweight” rating on the stock in a research note on Friday. TD Cowen cut their price objective on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating on the stock in a report on Monday, October 19th. Needham & Company LLC decreased their price objective on shares of Microchip Technology from $120.00 to $85.00 and set a “buy” rating for the company in a research report on Friday. BMO Capital Markets assumed coverage on Microchip Technology in a research note on Friday, August 21st. They set an “outperform” rating and a $95.00 target price for the company. Finally, Rosenblatt Securities dropped their target price on Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $91.64.

Microchip Technology Stock Down 10.0%

Shares of NASDAQ:MCHP opened at $58.35 on Friday. The company has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a price-to-earnings-growth ratio of 0.40 and a beta of 1.84. The company has a 50 day moving average of $74.85 and a two-hundred day moving average of $79.41. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03. Microchip Technology had a net margin of 14.96% and a return on equity of 20.45%. The business had revenue of $1.62 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same period in the previous year, the company posted $0.35 earnings per share. The business’s revenue for the quarter was up 42.2% compared to the same quarter last year. As a group, analysts forecast that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction 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 sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. 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. Company insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in MCHP. MSH Capital Advisors LLC raised its position in shares of Microchip Technology by 6.3% during the 3rd quarter. MSH Capital Advisors LLC now owns 3,823 shares of the semiconductor company’s stock worth $297,000 after purchasing an additional 228 shares during the period. Diversified Trust Co lifted its holdings in shares of Microchip Technology by 77.4% in the 3rd quarter. Diversified Trust Co now owns 19,840 shares of the semiconductor company’s stock worth $1,543,000 after purchasing an additional 8,655 shares during the last quarter. Aberdeen Group plc boosted its position in Microchip Technology by 403.4% during the 3rd quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock valued at $180,143,000 after purchasing an additional 1,856,181 shares during the period. Allworth Financial LP boosted its position in Microchip Technology by 18.8% during the 3rd quarter. Allworth Financial LP now owns 12,342 shares of the semiconductor company’s stock valued at $960,000 after purchasing an additional 1,957 shares during the period. Finally, Fisher Asset Management LLC boosted its position in Microchip Technology by 6.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,615 shares of the semiconductor company’s stock valued at $281,000 after purchasing an additional 229 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Key Headlines 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 Company Profile