Microchip Technology MCHP has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Microchip Technology, presenting an average target of $90.0, a high estimate of $100.00, and a low estimate of $80.00. Highlighting a 5.26% decrease, the current average has fallen from the previous average price target of $95.00.
Investigating Analyst Ratings: An Elaborate Study
The analysis of recent analyst actions sheds light on the perception of Microchip Technology by financial experts. 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 |
|---|---|---|---|---|---|
| Quinn Bolton | Needham | Lowers | Buy | $85.00 | $96.00 |
| 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 |
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: 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: Analysts gauge the dynamics of price targets, providing estimates for the future value of Microchip Technology's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Microchip Technology's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Microchip Technology analyst ratings.
Unveiling the Story Behind 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.
Breaking Down Microchip Technology's Financial Performance
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Challenges: Microchip Technology's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -45.76%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.42%, the company showcases strong profitability and effective cost control.
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 stands notably higher than the industry average, reaching 0.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
What Are Analyst Ratings?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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.
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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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