Microchip Technology (NASDAQ:MCHP) Price Target Cut to $70.00 by Analysts at Wells Fargo & Company

Microchip Technology (NASDAQ:MCHP) had its target price cut by Wells Fargo & Company from $80.00 to $70.00 in a research report sent to investors on Friday morning,Benzinga reports. They currently have an equal weight rating on the semiconductor company’s stock.

A number of other analysts have also weighed in on MCHP. Citigroup lowered their target price on Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a report on Friday, August 7th. Susquehanna decreased their target price on Microchip Technology from $120.00 to $100.00 and set a “positive” rating on the stock in a research report on Friday. TD Cowen reduced their price target on Microchip Technology from $90.00 to $75.00 and set a “hold” rating on the stock in a report on Monday, October 19th. Truist Financial reduced their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research report on Friday, August 7th. Finally, Needham & Company LLC decreased their price objective on shares of Microchip Technology from $120.00 to $85.00 and set a “buy” rating on the stock in a report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $91.64.

Microchip Technology Price Performance

Shares of NASDAQ MCHP traded down $6.50 during mid-day trading on Friday, hitting $58.35. 47,392,436 shares of the company’s stock traded hands, compared to its average volume of 10,941,434. The company’s 50-day moving average is $74.85 and its two-hundred day moving average is $79.41. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a market capitalization of $31.68 billion, a P/E ratio of 44.20, a PEG ratio of 0.52 and a beta of 1.84. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11.

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

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Monday, November 23rd will be paid a $0.4550 dividend. The ex-dividend date is Monday, November 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 3.1%. Microchip Technology’s dividend payout ratio (DPR) is currently 271.64%.

Insiders Place Their Bets

In other news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

A number of large investors have recently made changes to their positions in MCHP. MSH Capital Advisors LLC grew its position in shares of Microchip Technology by 6.3% during the third quarter. MSH Capital Advisors LLC now owns 3,823 shares of the semiconductor company’s stock worth $297,000 after acquiring an additional 228 shares during the last quarter. Diversified Trust Co raised its position in Microchip Technology by 77.4% during the 3rd quarter. Diversified Trust Co now owns 19,840 shares of the semiconductor company’s stock worth $1,543,000 after buying an additional 8,655 shares during the last quarter. Aberdeen Group plc lifted its stake in shares of Microchip Technology by 403.4% in the 3rd quarter. Aberdeen Group plc now owns 2,316,355 shares of the semiconductor company’s stock worth $180,143,000 after acquiring an additional 1,856,181 shares during the period. Allworth Financial LP lifted its stake in shares of Microchip Technology by 18.8% in the 3rd quarter. Allworth Financial LP now owns 12,342 shares of the semiconductor company’s stock worth $960,000 after acquiring an additional 1,957 shares during the period. Finally, Fisher Asset Management LLC boosted its holdings in shares of Microchip Technology by 6.8% in the third quarter. Fisher Asset Management LLC now owns 3,615 shares of the semiconductor company’s stock valued at $281,000 after acquiring an additional 229 shares in the last quarter. 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

About Microchip Technology