In the preceding three months, 17 analysts have released ratings for Microchip Technology MCHP, presenting a wide array of perspectives 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 | 9 | 4 | 4 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 7 | 3 | 4 | 0 | 0 |
| 2M Ago | 1 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $99.76, along with a high estimate of $115.00 and a low estimate of $85.00. This current average reflects an increase of 8.12% from the previous average price target of $92.27.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 |
|---|---|---|---|---|---|
| Blayne Curtis | Jefferies | Raises | Buy | $115.00 | $100.00 |
| Christopher Danely | Citigroup | Raises | Buy | $104.00 | $100.00 |
| Craig Ellis | B. Riley Securities | Raises | Buy | $110.00 | $105.00 |
| Joshua Buchalter | TD Cowen | Raises | Hold | $90.00 | $80.00 |
| Weston Twigg | Keybanc | Raises | Overweight | $110.00 | $90.00 |
| Pradeep Ramani | UBS | Raises | Buy | $103.00 | $95.00 |
| Toshiya Hari | Goldman Sachs | Raises | Neutral | $88.00 | $77.00 |
| Harsh Kumar | Piper Sandler | Raises | Neutral | $90.00 | $80.00 |
| William Stein | Truist Securities | Raises | Buy | $96.00 | $93.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $105.00 | $100.00 |
| Quinn Bolton | Needham | Raises | Buy | $100.00 | $90.00 |
| Vijay Rakesh | Mizuho | Raises | Neutral | $85.00 | $82.00 |
| Tore Svanberg | Stifel | Raises | Buy | $102.00 | $98.00 |
| Tore Svanberg | Stifel | Raises | Buy | $98.00 | $94.00 |
| Mark Lipacis | Evercore ISI Group | Announces | Outperform | $106.00 | - |
| Christopher Rolland | Susquehanna | Maintains | Positive | $100.00 | $100.00 |
| Tore Svanberg | Stifel | Maintains | Buy | $94.00 | - |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.
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.
A Deep Dive into Microchip Technology's 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 31 March, 2024, the company experienced a decline of approximately -24.91% in revenue growth, reflecting 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 11.67%, the company showcases strong profitability and 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 2.25%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Microchip Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.97%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Microchip Technology's debt-to-equity ratio surpasses industry norms, standing at 0.9. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
What Are Analyst Ratings?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
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.
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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