Wall Street Zen Downgrades Microchip Technology (NASDAQ:MCHP) to Hold
by Kim Johansen · The Markets DailyMicrochip Technology (NASDAQ:MCHP – Get Free Report) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
A number of other equities research analysts have also recently issued reports on the stock. KeyCorp reiterated an “overweight” rating and issued a $85.00 price objective on shares of Microchip Technology in a report on Friday, February 6th. UBS Group raised their target price on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 26th. Truist Financial boosted their price target on Microchip Technology from $60.00 to $68.00 and gave the stock a “hold” rating in a research report on Friday, February 6th. B. Riley Financial increased their price objective on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 12th. Finally, Rosenblatt Securities raised their price objective on Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a research note on Friday, February 6th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $86.00.
Get Our Latest Report on Microchip Technology
Microchip Technology Trading Up 2.0%
NASDAQ:MCHP opened at $65.63 on Monday. The company has a market capitalization of $35.52 billion, a P/E ratio of -226.31, a P/E/G ratio of 1.62 and a beta of 1.45. The stock’s 50 day moving average price is $72.95 and its 200 day moving average price is $66.59. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. Microchip Technology has a 52 week low of $34.13 and a 52 week high of $83.35.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the previous year, the firm posted $0.20 earnings per share. The company’s revenue for the quarter was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, research analysts forecast that Microchip Technology will post 1.03 EPS for the current fiscal year.
Insider Activity
In other news, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the transaction, the chief executive officer directly owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.94% of the company’s stock.
Institutional Trading of Microchip Technology
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC acquired a new position in shares of Microchip Technology during the third quarter worth approximately $25,000. Root Financial Partners LLC acquired a new stake in shares of Microchip Technology in the third quarter worth $28,000. EFG International AG bought a new position in Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. bought a new position in Microchip Technology during the fourth quarter worth $29,000. Finally, Salomon & Ludwin LLC raised its stake in Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 329 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.
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.