17 analysts have expressed a variety of opinions on Microchip Technology MCHP over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 3 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 8 | 2 | 4 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $102.41, with a high estimate of $115.00 and a low estimate of $85.00. This current average reflects an increase of 10.97% from the previous average price target of $92.29.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive Microchip Technology is derived from recent analyst actions. The following is a detailed summary of 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 | $100.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $115.00 | $105.00 |
| Joseph Moore | Morgan Stanley | Lowers | Equal-Weight | $100.00 | $102.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $115.00 | $85.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $115.00 | $85.00 |
| Blayne Curtis | Jefferies | Raises | Buy | $115.00 | $100.00 |
| Christopher Danely | Citigroup | Raises | Buy | $104.00 | $100.00 |
| Craig Ellis | B. Riley Securities | Raises | Buy | $110.00 | $105.00 |
| Joshua Buchalter | TD Cowen | Raises | Hold | $90.00 | $80.00 |
| Weston Twigg | Keybanc | Raises | Overweight | $110.00 | $90.00 |
| Pradeep Ramani | UBS | Raises | Buy | $103.00 | $95.00 |
| Toshiya Hari | Goldman Sachs | Raises | Neutral | $88.00 | $77.00 |
| Harsh Kumar | Piper Sandler | Raises | Neutral | $90.00 | $80.00 |
| William Stein | Truist Securities | Raises | Buy | $96.00 | $93.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $105.00 | $100.00 |
| Quinn Bolton | Needham | Raises | Buy | $100.00 | $90.00 |
| Vijay Rakesh | Mizuho | Raises | Neutral | $85.00 | $82.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Microchip Technology. This information provides a snapshot of how analysts perceive 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
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.
Get to Know Microchip Technology Better
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.
Financial Milestones: Microchip Technology's Journey
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Negative Revenue Trend: Examining Microchip Technology's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -40.62% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.67%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Microchip Technology's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.25%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Microchip Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.97%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Microchip Technology's debt-to-equity ratio surpasses industry norms, standing at 0.91. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyst Ratings: Simplified
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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