Across the recent three months, 12 analysts have shared their insights on Microchip Technology MCHP, expressing a variety of opinions spanning from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| 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 set 12-month price targets for Microchip Technology, revealing an average target of $95.0, a high estimate of $105.00, and a low estimate of $80.00. This current average has decreased by 7.24% from the previous average price target of $102.42.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Microchip Technology by financial experts is analyzed through recent analyst actions. The following summary presents 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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microchip Technology. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Microchip Technology's stock. This analysis reveals shifts in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Microchip Technology's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Microchip Technology analyst ratings.
Delving into Microchip Technology's Background
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.
A Deep Dive into Microchip Technology's Financials
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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 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: Microchip Technology's net margin lags behind industry averages, suggesting 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): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.98%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Microchip Technology's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.82%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Microchip Technology's debt-to-equity ratio stands notably higher than the industry average, reaching 0.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a 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.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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