Microchip Technology MCHP underwent analysis by 12 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 4 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 6 | 3 | 1 | 0 | 0 |
Analysts have recently evaluated Microchip Technology and provided 12-month price targets. The average target is $95.0, accompanied by a high estimate of $105.00 and a low estimate of $80.00. A 7.24% drop is evident in the current average compared to the previous average price target of $102.42.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive Microchip Technology. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Rolland | Susquehanna | Lowers | Positive | $95.00 | $105.00 |
| 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 |
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 unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.
To gain a panoramic view of Microchip Technology's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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.
Key Indicators: Microchip Technology's Financial Health
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Microchip Technology's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -45.76%. This indicates a decrease in the company's 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 standards, pointing towards difficulties in achieving strong profitability. With a net margin of 10.42%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Microchip Technology's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.98%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.82%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Microchip Technology's debt-to-equity ratio surpasses industry norms, standing at 0.97. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyst Ratings: Simplified
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.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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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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