Analysts' ratings for Microchip Technology MCHP over the last quarter vary from bullish to bearish, as provided by 13 analysts.
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 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 5 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 2 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 1 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $67.23, a high estimate of $90.00, and a low estimate of $58.00. This current average represents a 17.39% decrease from the previous average price target of $81.38.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive Microchip Technology is derived from recent analyst actions. The following is a detailed summary of 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 | Raises | Buy | $66.00 | $60.00 |
| Craig Ellis | B. Riley Securities | Lowers | Buy | $75.00 | $85.00 |
| Melissa Fairbanks | Raymond James | Lowers | Strong Buy | $60.00 | $95.00 |
| John Vinh | Keybanc | Lowers | Overweight | $60.00 | $70.00 |
| Harsh Kumar | Piper Sandler | Lowers | Overweight | $65.00 | $85.00 |
| Quinn Bolton | Needham | Lowers | Buy | $60.00 | $85.00 |
| Hans Mosesmann | Rosenblatt | Lowers | Buy | $70.00 | $90.00 |
| Hans Mosesmann | Rosenblatt | Maintains | Buy | $90.00 | $90.00 |
| 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 |
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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
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.
Discovering Microchip Technology: A Closer Look
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.
Unraveling the Financial Story of Microchip Technology
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could 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 31 December, 2024, the company experienced a revenue decline of approximately -41.89%. This indicates a decrease in the company's 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: Microchip Technology's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -5.22%, 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 -0.87%, 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 -0.34%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a high debt-to-equity ratio of 1.12, Microchip Technology faces challenges in effectively managing its debt levels, indicating potential financial strain.
Analyst Ratings: What Are They?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
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.
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