Zacks Research Issues Positive Forecast for MCHP Earnings

Key Points

• Analysts at Zacks Research have raised their Q1 2027 EPS estimate for Microchip Technology from $0.33 to $0.37, while the full-year EPS estimate stands at $1.03.
• Microchip Technology reported a $0.11 EPS for the last quarter, slightly beating the consensus estimate of $0.10, despite a 26.8% year-over-year decline in revenue.
• The company's stock has seen a positive trend, with analysts giving it a consensus rating of "Moderate Buy" and a target price of $75.70.

Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) - Equities researchers at Zacks Research lifted their Q1 2027 earnings estimates for Microchip Technology in a note issued to investors on Thursday, July 24th. Zacks Research analyst R. Department now anticipates that the semiconductor company will earn $0.37 per share for the quarter, up from their previous estimate of $0.33. The consensus estimate for Microchip Technology's current full-year earnings is $1.03 per share. Zacks Research also issued estimates for Microchip Technology's Q2 2027 earnings at $0.48 EPS, Q3 2027 earnings at $0.62 EPS, FY2027 earnings at $1.93 EPS and Q1 2028 earnings at $0.53 EPS.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. The firm had revenue of $970.50 million for the quarter, compared to analysts' expectations of $962.86 million. During the same quarter in the prior year, the firm posted $0.57 earnings per share. The company's quarterly revenue was down 26.8% on a year-over-year basis.

A number of other brokerages have also weighed in on MCHP. Truist Financial lifted their price objective on shares of Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a report on Wednesday, June 18th. Raymond James Financial lifted their price target on shares of Microchip Technology from $60.00 to $65.00 and gave the company a "strong-buy" rating in a research note on Friday, May 9th. Cantor Fitzgerald started coverage on Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price for the company. Wall Street Zen raised Microchip Technology from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Finally, Stifel Nicolaus lifted their price objective on Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a report on Friday, July 18th. Six investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $75.70.

Microchip Technology Trading Down 2.4%

Shares of NASDAQ:MCHP traded down $1.67 on Monday, hitting $68.62. 1,405,899 shares of the company's stock were exchanged, compared to its average volume of 10,408,046. The stock has a market capitalization of $37.03 billion, a price-to-earnings ratio of -6,870.40, a price-to-earnings-growth ratio of 2.04 and a beta of 1.52. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $89.59. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.59 and a quick ratio of 1.47. The business's 50 day simple moving average is $68.45 and its two-hundred day simple moving average is $57.68.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Garde Capital Inc. purchased a new stake in shares of Microchip Technology in the first quarter valued at approximately $30,000. MCF Advisors LLC grew its stake in Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 321 shares during the period. Carderock Capital Management Inc. purchased a new stake in Microchip Technology in the 2nd quarter worth $39,000. WPG Advisers LLC purchased a new position in Microchip Technology during the first quarter valued at $40,000. Finally, Painted Porch Advisors LLC acquired a new stake in shares of Microchip Technology in the second quarter valued at about $40,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Insider Buying and Selling

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the sale, the chief financial officer directly owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Karlton D. Johnson sold 494 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total value of $29,980.86. Following the completion of the transaction, the director directly owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Investors of record on Thursday, May 22nd were issued a $0.455 dividend. The ex-dividend date was Thursday, May 22nd. This represents a $1.82 annualized dividend and a yield of 2.65%. Microchip Technology's dividend payout ratio (DPR) is presently -18,200.00%.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.