Across the recent three months, 8 analysts have shared their insights on Microchip Technology MCHP, expressing a variety of opinions spanning from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 3 | 2 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 1 | 0 |
| 3M Ago | 2 | 1 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $73.75, a high estimate of $90.00, and a low estimate of $58.00. Highlighting a 11.68% decrease, the current average has fallen from the previous average price target of $83.50.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 |
|---|---|---|---|---|---|
| Joseph Moore | Morgan Stanley | Lowers | Equal-Weight | $58.00 | $71.00 |
| John Vinh | Keybanc | Lowers | Overweight | $70.00 | $90.00 |
| Vijay Rakesh | Mizuho | Lowers | Outperform | $72.00 | $85.00 |
| Toshiya Hari | Goldman Sachs | Lowers | Neutral | $63.00 | $72.00 |
| Vivek Arya | B of A Securities | Lowers | Underperform | $65.00 | $80.00 |
| Tore Svanberg | Stifel | Lowers | Buy | $87.00 | $90.00 |
| John Vinh | Keybanc | Lowers | Overweight | $90.00 | $95.00 |
| Quinn Bolton | Needham | Maintains | Buy | $85.00 | $85.00 |
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: Providing a comprehensive analysis, analysts offer 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.
For valuable insights into Microchip Technology's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent 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: 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.
Decline in Revenue: Over the 3 months period, Microchip Technology faced challenges, resulting in a decline of approximately -48.37% in revenue growth as of 30 September, 2024. This signifies a reduction 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 6.74%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Microchip Technology's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.24%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Microchip Technology's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.5%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Microchip Technology's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.03, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyst Ratings: What Are They?
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 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.
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