Microchip Technology (NASDAQ:MCHP) Sets New 12-Month High on Analyst Upgrade

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price hit a new 52-week high during mid-day trading on Thursday after BNP Paribas Exane upgraded the stock from a neutral rating to an outperform rating. BNP Paribas Exane now has a $90.00 price target on the stock. Microchip Technology traded as high as $78.70 and last traded at $78.46, with a volume of 56797 shares. The stock had previously closed at $76.20.

Several other analysts also recently issued reports on MCHP. Stifel Nicolaus set a $80.00 price target on shares of Microchip Technology and gave the company a “buy” rating in a report on Tuesday, January 6th. Truist Financial reissued a “hold” rating and issued a $60.00 target price (down previously from $64.00) on shares of Microchip Technology in a research note on Friday, November 7th. TD Cowen cut their price objective on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research report on Friday, November 7th. Susquehanna boosted their price target on Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a report on Thursday. Finally, Mizuho lifted their price objective on Microchip Technology from $80.00 to $83.00 and gave the company an “outperform” rating in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $80.82.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the transaction, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sagespring Wealth Partners LLC increased its position in shares of Microchip Technology by 2.7% in the second quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company’s stock worth $407,000 after purchasing an additional 154 shares during the period. Florida Trust Wealth Management Co boosted its position in shares of Microchip Technology by 3.3% during the 3rd quarter. Florida Trust Wealth Management Co now owns 4,890 shares of the semiconductor company’s stock worth $314,000 after acquiring an additional 157 shares in the last quarter. Bouchey Financial Group Ltd raised its position in Microchip Technology by 4.4% during the fourth quarter. Bouchey Financial Group Ltd now owns 3,771 shares of the semiconductor company’s stock valued at $240,000 after purchasing an additional 159 shares in the last quarter. Clean Yield Group raised its stake in Microchip Technology by 9.4% during the third quarter. Clean Yield Group now owns 1,890 shares of the semiconductor company’s stock worth $121,000 after acquiring an additional 163 shares in the last quarter. Finally, Mechanics Financial Corp lifted its stake in Microchip Technology by 3.4% in the 2nd quarter. Mechanics Financial Corp now owns 5,014 shares of the semiconductor company’s stock valued at $353,000 after purchasing an additional 167 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Trading Up 2.2%

The business has a fifty day simple moving average of $64.00 and a 200-day simple moving average of $65.29. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25. The firm has a market cap of $42.08 billion, a price-to-earnings ratio of -174.68, a PEG ratio of 2.17 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.13 billion. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.46 earnings per share. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. As a group, equities analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Monday, November 24th. Microchip Technology’s payout ratio is currently -404.44%.

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.