13 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 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 | 6 | 4 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 6 | 3 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $96.92, a high estimate of $115.00, and a low estimate of $80.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.33%.
Diving into Analyst Ratings: An In-Depth Exploration
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 |
|---|---|---|---|---|---|
| William Stein | Truist Securities | Lowers | Hold | $80.00 | $89.00 |
| Harsh Kumar | Piper Sandler | Raises | Overweight | $100.00 | $90.00 |
| Quinn Bolton | Needham | Lowers | Buy | $96.00 | $100.00 |
| Hans Mosesmann | Rosenblatt | Lowers | Buy | $90.00 | $100.00 |
| Christopher Danely | Citigroup | Lowers | Buy | $92.00 | $104.00 |
| Craig Ellis | B. Riley Securities | Lowers | Buy | $103.00 | $110.00 |
| William Stein | Truist Securities | Lowers | Buy | $89.00 | $96.00 |
| Harlan Sur | JP Morgan | Lowers | Overweight | $100.00 | $110.00 |
| Christopher Rolland | Susquehanna | Lowers | Positive | $105.00 | $115.00 |
| Vivek Arya | B of A Securities | Lowers | Neutral | $90.00 | $110.00 |
| 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 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microchip Technology. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Microchip Technology's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Microchip Technology's market position. Stay informed and make data-driven decisions with the assistance of 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: Delving into Financials
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 30 June, 2024, the company experienced a decline of approximately -45.76% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Microchip Technology's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 10.42%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Microchip Technology's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.98%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Microchip Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.82%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Microchip Technology's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.97, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
What Are Analyst Ratings?
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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