Microchip Technology (NASDAQ:MCHP) Price Target Cut to $85.00 by Analysts at Needham & Company LLC

Microchip Technology (NASDAQ:MCHP) had its price objective trimmed by Needham & Company LLC from $120.00 to $85.00 in a research report report published on Friday,Benzinga reports. They currently have a buy rating on the semiconductor company’s stock.

A number of other equities research analysts have also commented on the company. Cantor Fitzgerald decreased their price target on Microchip Technology from $125.00 to $100.00 and set an “overweight” rating on the stock in a research report on Friday. Truist Financial cut their price objective on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Friday, August 7th. BMO Capital Markets initiated coverage on Microchip Technology in a research note on Friday, August 21st. They issued an “outperform” rating and a $95.00 price objective on the stock. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Finally, Wells Fargo & Company cut their price target on Microchip Technology from $88.00 to $80.00 and set an “equal weight” rating for the company in a report on Tuesday, October 20th. Three research 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’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $91.64.

Microchip Technology Price Performance

MCHP traded down $6.50 during midday trading on Friday, reaching $58.35. 47,392,436 shares of the company’s stock were exchanged, compared to its average volume of 10,941,434. Microchip Technology has a one year low of $48.52 and a one year 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. The business has a 50-day simple moving average of $74.85 and a two-hundred day simple moving average of $79.41. The firm has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP) last released 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. The firm had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The business’s revenue for the quarter was up 42.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.35 earnings per share. As a group, research analysts predict that Microchip Technology will post 3.20 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed 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 of this dividend 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 presently 271.64%.

Insider Buying and Selling

In other news, CFO James Bjornholt sold 4,112 shares of the 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 transaction, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,152,118.36. This represents a 12.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

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