Microchip Technology Incorporated Receives Moderate Buy Rating from Analyst Firms

Microchip Technology Incorporated (NASDAQ:MCHP) has received an average rating of "Moderate Buy" from the eighteen brokerages that are currently tracking the stock, as reported by MarketBeat. Among these analysts, one has issued a sell rating, four have given a hold recommendation, and thirteen have recommended buying the stock. The consensus 12-month price target set by analysts stands at $85.00.

Recently, various analysts have published reports on Microchip Technology. On December 16th, Bank of America revised its stance on the company by downgrading it from a "neutral" rating to an "underperform" rating, while also lowering its price target from $80.00 to $65.00. Truist Financial similarly modified their rating, changing it from "buy" to "hold," with a new price target of $80.00, down from $89.00, on September 23rd. Additionally, The Goldman Sachs Group decreased their price target on MCHP from $72.00 to $63.00, classifying it as a "neutral" rating in their assessment issued on January 10th. Evercore ISI reaffirmed an "outperform" rating but adjusted the price objective to $95.00, down from $101.00, in a report released on November 6th. Lastly, Citigroup reduced their target price from $92.00 to $82.00 while rating the stock as "buy" in the same report.

Microchip Technology Stock Overview

On Friday, MCHP opened at $57.97. The stock has a 50-day simple moving average of $61.11 and a 200-day simple moving average of $73.71. Over the past year, the stock has reached a low of $54.47 and a high of $100.57. The company boasts a market capitalization of $31.13 billion, with a price-to-earnings (P/E) ratio of 40.54 and a beta of 1.52. Moreover, the firm has a current ratio of 0.88, a quick ratio of 0.48, and a debt-to-equity ratio of 0.71.

Microchip Technology recently announced its earnings results on November 5th, revealing earnings per share (EPS) of $0.46, which surpassed analysts’ expectations of $0.43 by $0.03. The company reported a net margin of 14.22% and a return on equity of 19.47%. The revenue for the quarter came in at $1.16 billion, slightly above the anticipated $1.15 billion. In the same quarter of the previous year, the company reported an EPS of $1.54, indicating a revenue decrease of 48.4% compared to the previous year. Analysts forecast that Microchip Technology is expected to generate an EPS of 1.32 for the current year.

Dividend Announcement by Microchip Technology

The company has also recently declared a quarterly dividend, which was paid to shareholders on December 6th. Those who held shares on November 22nd received a dividend of $0.455, translating to an annualized dividend of $1.82 and a dividend yield of 3.14%. This dividend payout is an increase from their previous quarterly dividend of $0.45. The current payout ratio for Microchip Technology is 127.27%.

Investment Activity in Microchip Technology

Several institutional investors have recently adjusted their positions in Microchip Technology. For instance, Prospera Private Wealth LLC acquired a new stake worth approximately $29,000 during the third quarter. Similarly, Peterson Financial Group Inc. and Truvestments Capital LLC each purchased new shares valued at around $34,000 during the same period. Notably, Wolff Wiese Magana LLC increased its stake in the company by 55.2% in the third quarter, accumulating 613 shares valued at $49,000 after adding 218 shares. Another significant transaction involved Hobbs Group Advisors LLC, which boosted its holdings in Microchip Technology by a staggering 390.6%, acquiring an additional 500 shares and bringing its total to 628 shares, valued at $50,000. Currently, institutional investors hold 91.51% of the company's stock.

About Microchip Technology

Microchip Technology Incorporated is engaged in developing, manufacturing, and selling smart, connected, and secure embedded control solutions across the Americas, Europe, and Asia. The company delivers a range of products, including general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for various applications such as automotive, industrial, computing, communication, power supply, motor control, and human-machine interface.

Microchip, Stock, Earnings