Microchip Technology Incorporated (NASDAQ:MCHP) Receives $101.06 Average Price Target from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has earned an average recommendation of “Moderate Buy” from the eighteen analysts that are currently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $101.06.

A number of equities research analysts have weighed in on the company. TD Cowen lifted their target price on Microchip Technology from $80.00 to $90.00 and gave the company a “hold” rating in a research report on Tuesday, May 7th. The Goldman Sachs Group lifted their target price on Microchip Technology from $77.00 to $88.00 and gave the company a “neutral” rating in a research report on Tuesday, May 7th. Jefferies Financial Group began coverage on Microchip Technology in a research report on Monday, May 13th. They set a “buy” rating and a $115.00 target price for the company. Needham & Company LLC boosted their price target on Microchip Technology from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Tuesday, May 7th. Finally, Truist Financial boosted their price target on Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday, May 7th.

Insider Buying and Selling

In related news, VP Stephen V. Drehobl sold 10,000 shares of the business’s stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the transaction, the vice president now directly owns 82,203 shares in the company, valued at approximately $7,470,608.64. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. In other Microchip Technology news, CFO James Eric Bjornholt sold 3,188 shares of the business’s stock in a transaction dated Thursday, May 23rd. The stock was sold at an average price of $99.98, for a total transaction of $318,736.24. Following the sale, the chief financial officer now owns 33,257 shares in the company, valued at approximately $3,325,034.86. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Stephen V. Drehobl sold 10,000 shares of the business’s stock in a transaction dated Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total value of $908,800.00. Following the sale, the vice president now owns 82,203 shares in the company, valued at approximately $7,470,608.64. The disclosure for this sale can be found here. Insiders have sold a total of 23,993 shares of company stock worth $2,251,857 in the last ninety days. 2.07% of the stock is owned by insiders.

Institutional Trading of Microchip Technology

Large investors have recently added to or reduced their stakes in the company. Glenmede Trust Co. NA boosted its stake in shares of Microchip Technology by 8.0% in the third quarter. Glenmede Trust Co. NA now owns 103,638 shares of the semiconductor company’s stock worth $8,089,000 after buying an additional 7,685 shares during the last quarter. Advisors Asset Management Inc. boosted its stake in shares of Microchip Technology by 63.3% in the third quarter. Advisors Asset Management Inc. now owns 27,752 shares of the semiconductor company’s stock worth $2,166,000 after buying an additional 10,755 shares during the last quarter. Alps Advisors Inc. boosted its stake in shares of Microchip Technology by 8.9% in the third quarter. Alps Advisors Inc. now owns 4,241 shares of the semiconductor company’s stock worth $331,000 after buying an additional 348 shares during the last quarter. Lido Advisors LLC boosted its stake in shares of Microchip Technology by 38.3% in the third quarter. Lido Advisors LLC now owns 59,945 shares of the semiconductor company’s stock worth $4,679,000 after buying an additional 16,586 shares during the last quarter. Finally, JT Stratford LLC boosted its stake in shares of Microchip Technology by 38.9% in the third quarter. JT Stratford LLC now owns 13,750 shares of the semiconductor company’s stock worth $1,073,000 after buying an additional 3,851 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Price Performance

Shares of MCHP stock opened at $92.34 on Wednesday. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.67 and a current ratio of 1.20. The stock has a 50 day moving average price of $93.36 and a 200 day moving average price of $89.18. The firm has a market capitalization of $49.58 billion, a P/E ratio of 26.61 and a beta of 1.54. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $100.57.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.57. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a return on equity of 36.78% and a net margin of 24.98%. Microchip Technology’s revenue was down 40.6% on a year-over-year basis. During the same period in the previous year, the company posted $1.56 EPS. As a group, sell-side analysts predict that Microchip Technology will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 5th. Investors of record on Wednesday, May 22nd were paid a dividend of $0.452 per share. This represents a $1.81 annualized dividend and a yield of 1.96%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Tuesday, May 21st. Microchip Technology’s payout ratio is 52.16%.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.