What Analysts Are Saying About Microchip Technology Stock

Microchip Technology Incorporated +0.36%

Microchip Technology Incorporated

MCHP

95.90

+0.36%

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on Microchip Technology (NASDAQ:MCHP) in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 5 1 0 0
Last 30D 1 0 0 0 0
1M Ago 2 1 1 0 0
2M Ago 0 0 0 0 0
3M Ago 2 4 0 0 0

Analysts have set 12-month price targets for Microchip Technology, revealing an average target of $91.73, a high estimate of $105.00, and a low estimate of $80.00. Observing a downward trend, the current average is 5.99% lower than the prior average price target of $97.57.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Microchip Technology by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Hans Mosesmann Rosenblatt Maintains Buy $100.00 -
Chris Caso Wolfe Research Announces Outperform $105.00 -
William Stein Truist Securities Lowers Buy $93.00 $97.00
Tore Svanberg Stifel Lowers Buy $96.00 $100.00
Harsh Kumar Piper Sandler Announces Neutral $80.00 -
Christopher Danely Citigroup Announces Buy $100.00 -
Harsh Kumar Piper Sandler Lowers Overweight $80.00 $100.00
Christopher Rolland Susquehanna Lowers Positive $90.00 $95.00
Joseph Moore Morgan Stanley Lowers Overweight $90.00 $96.00
Weston Twigg Keybanc Lowers Overweight $90.00 $95.00
Rajvindra Gill Needham Lowers Buy $85.00 $100.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Microchip Technology. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Microchip Technology compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Microchip Technology's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Microchip Technology's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Microchip Technology analyst ratings.

Delving into Microchip Technology's Background

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Breaking Down Microchip Technology's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Microchip Technology's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.74% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Microchip Technology's net margin excels beyond industry benchmarks, reaching 29.57%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.66%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.03%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.88, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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