UBS Group Increases Microchip Technology (NASDAQ:MCHP) Price Target to $130.00

Microchip Technology (NASDAQ:MCHP) had its price target raised by UBS Group from $115.00 to $130.00 in a research note issued on Friday,Benzinga reports. The firm currently has a “buy” rating on the semiconductor company’s stock. UBS Group’s price objective points to a potential upside of 31.19% from the company’s previous close.

Several other research analysts have also weighed in on the stock. KeyCorp restated an “overweight” rating and set a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Barclays began coverage on shares of Microchip Technology in a report on Thursday, February 12th. They issued an “equal weight” rating and a $80.00 price target on the stock. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price target on the stock in a report on Thursday, January 22nd. Zacks Research downgraded shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 24th. Finally, Citigroup upped their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $95.35.

Microchip Technology Stock Performance

MCHP traded down $2.49 on Friday, reaching $99.09. The company had a trading volume of 18,852,453 shares, compared to its average volume of 9,619,642. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $53.62 billion, a PE ratio of -341.69, a P/E/G ratio of 1.38 and a beta of 1.75. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The stock has a 50-day moving average price of $73.27 and a 200-day moving average price of $69.20.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the business posted $0.11 earnings per share. The business’s revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, research analysts forecast that Microchip Technology will post 1.16 EPS for the current fiscal year.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the transaction, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. This represents a 0.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 526,552 shares of company stock worth $47,130,465. 1.94% of the stock is currently owned by company insiders.

Institutional Trading of Microchip Technology

Hedge funds have recently bought and sold shares of the company. PNC Financial Services Group Inc. increased its stake in Microchip Technology by 1.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 184,981 shares of the semiconductor company’s stock valued at $11,952,000 after buying an additional 2,905 shares during the period. Oslo Pensjonsforsikring AS acquired a new position in shares of Microchip Technology in the first quarter worth about $89,000. Andra AP fonden acquired a new stake in shares of Microchip Technology during the first quarter worth approximately $307,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Microchip Technology during the first quarter worth approximately $108,000. Finally, Meeder Advisory Services Inc. lifted its stake in Microchip Technology by 11.9% in the first quarter. Meeder Advisory Services Inc. now owns 9,354 shares of the semiconductor company’s stock valued at $604,000 after acquiring an additional 995 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

Key Microchip Technology News

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

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.