Analyst Expectations For Microchip Technology's Future

In the preceding three months, 12 analysts have released ratings for Microchip Technology MCHP, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $91.75, along with a high estimate of $105.00 and a low estimate of $77.00. Highlighting a 3.67% decrease, the current average has fallen from the previous average price target of $95.25.

Investigating Analyst Ratings: An Elaborate Study

The standing of Microchip Technology among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Microchip Technology. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microchip Technology compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Microchip Technology's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Microchip Technology's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Microchip Technology analyst ratings.

About Microchip Technology

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.

Microchip Technology's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Microchip Technology faced challenges, resulting in a decline of approximately -18.6% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Microchip Technology's net margin is impressive, surpassing industry averages. With a net margin of 23.74%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Microchip Technology's ROE excels beyond industry benchmarks, reaching 5.97%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Microchip Technology's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.56%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Microchip Technology's debt-to-equity ratio surpasses industry norms, standing at 0.81. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

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