Brokerages Set Microchip Technology Incorporated (NASDAQ:MCHP) Price Target at $97.52

Microchip Technology Incorporated (NASDAQ:MCHP) has earned a consensus recommendation of “Moderate Buy” from the twenty-six analysts that are covering the stock, MarketBeat reports. Seven equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and four have assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $97.5217.

MCHP has been the subject of several recent analyst reports. Cantor Fitzgerald reissued an “overweight” rating and issued a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Citigroup upped their target price on Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. Truist Financial lifted their price target on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a research note on Friday, May 8th. Finally, Barclays upped their price target on Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research report on Monday, May 11th.

Insider Activity at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. This represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Steve Sanghi sold 76,469 shares of the company’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the completion of the sale, the chief executive officer owned 9,385,834 shares of the company’s stock, valued at approximately $878,326,345.72. This trade represents a 0.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 553,302 shares of company stock valued at $49,673,635 over the last quarter. Corporate insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Large investors have recently added to or reduced their stakes in the company. EFG International AG bought a new stake in Microchip Technology during the 4th quarter worth about $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Reflection Asset Management acquired a new position in shares of Microchip Technology during the fourth quarter worth about $33,000. Garton & Associates Financial Advisors LLC acquired a new stake in Microchip Technology in the 4th quarter valued at $33,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock valued at $33,000 after purchasing an additional 513 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $89.50 on Wednesday. The firm has a market capitalization of $48.52 billion, a P/E ratio of 429.19, a P/E/G ratio of 0.96 and a beta of 1.73. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The firm’s 50 day moving average is $86.13 and its two-hundred day moving average is $74.90.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the firm posted $0.11 EPS. The company’s revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Research analysts forecast that Microchip Technology will post 2.58 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s payout ratio is currently 866.67%.

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.