Microchip Technology (NASDAQ:MCHP) Stock Price Target Cut by Citigroup

by · The Cerbat Gem

Microchip Technology (NASDAQ:MCHP – Get Free Report) had its price target lowered by analysts at Citigroup from $95.00 to $75.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Citigroup‘s price objective suggests a potential upside of 28.53% from the stock’s current price.

MCHP has been the topic of several other reports. B. Riley Financial dropped their target price on shares of Microchip Technology from $98.00 to $85.00 and set a “buy” rating on the stock in a research report on Friday. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. TD Cowen reduced their price target on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a research report on Monday, October 19th. Rosenblatt Securities decreased their price objective on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating for the company in a research note on Friday. Finally, Truist Financial lowered their price objective on shares of Microchip Technology from $90.00 to $62.00 and set a “hold” rating on the stock in a research report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $91.95.

Check Out Our Latest Report on MCHP

Microchip Technology Trading Down 10.0%

Shares of NASDAQ MCHP traded down $6.50 during mid-day trading on Friday, hitting $58.35. 46,545,487 shares of the company traded hands, compared to its average volume of 10,500,540. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The stock has a market capitalization of $31.68 billion, a price-to-earnings ratio of 87.09, a PEG ratio of 0.52 and a beta of 1.84. 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 moving average of $75.19 and a two-hundred day moving average of $79.48.

Microchip Technology (NASDAQ:MCHP – Get Free Report) last posted 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 return on equity of 14.97% and a net margin of 9.34%. The firm had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the previous year, the company earned $0.35 EPS. The business’s revenue for the quarter was up 42.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Activity

In related 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 transaction of $309,715.84. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Apella Capital LLC grew its stake in shares of Microchip Technology by 4.8% in the 2nd quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company’s stock valued at $225,000 after buying an additional 122 shares in the last quarter. Bridgewater Advisors Inc. increased its holdings in Microchip Technology by 4.2% in the second quarter. Bridgewater Advisors Inc. now owns 3,331 shares of the semiconductor company’s stock worth $304,000 after buying an additional 133 shares during the last quarter. Total Wealth Planning & Management Inc. raised its position in Microchip Technology by 3.5% during the second quarter. Total Wealth Planning & Management Inc. now owns 4,225 shares of the semiconductor company’s stock valued at $385,000 after acquiring an additional 141 shares in the last quarter. Texas Capital Bank Wealth Management Services Inc raised its position in Microchip Technology by 2.0% during the second quarter. Texas Capital Bank Wealth Management Services Inc now owns 7,513 shares of the semiconductor company’s stock valued at $685,000 after acquiring an additional 144 shares in the last quarter. Finally, Greenleaf Trust raised its position in Microchip Technology by 0.6% during the second quarter. Greenleaf Trust now owns 24,163 shares of the semiconductor company’s stock valued at $2,204,000 after acquiring an additional 151 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

More Microchip Technology News

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

  • Positive Sentiment: Fiscal Q2 earnings of $0.97 per share topped the $0.94 consensus, while revenue of $1.62 billion also beat estimates and rose 42.2% year over year. Management cited recovering industrial and data-center demand. Microchip Q2 earnings and revenue beat estimates
  • Positive Sentiment: The company declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annualized. Microchip announces fiscal Q2 results
  • Negative Sentiment: December-quarter guidance is the main headwind: revenue is forecast to be down 3% to up 1% sequentially, with non-GAAP EPS of $0.87–$0.95; the earnings midpoint was below analyst expectations. Supply constraints and rising costs also pose near-term risks. Earnings call highlights supply constraints and growth
  • Negative Sentiment: Several firms lowered price targets after the results, including Truist, which cut its target to $62 and moved to a Hold rating. Other firms also reduced targets, even where they retained Buy or Overweight ratings—signaling more cautious estimates despite the quarterly beat. Analysts slash forecasts after Q2 results

Microchip Technology Company Profile

(Get Free Report)

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.

Further Reading