Beyond The Numbers: 14 Analysts Discuss Microchip Technology Stock

Microchip Technology MCHP underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $66.64, along with a high estimate of $90.00 and a low estimate of $50.00. This current average represents a 13.53% decrease from the previous average price target of $77.07.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Microchip Technology among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Christopher Danely |Citigroup |Lowers |Buy | $50.00|$65.00 | |Mark Lipacis |Evercore ISI Group |Raises |Outperform | $71.00|$65.00 | |Vijay Rakesh |Mizuho |Raises |Outperform | $68.00|$58.00 | |Kevin Cassidy |Rosenblatt |Maintains |Buy | $70.00|$70.00 | |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 |

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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microchip Technology compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Microchip Technology's stock. This comparison reveals trends in analysts' expectations over time.

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.

Microchip Technology's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3M period, Microchip Technology faced challenges, resulting in a decline of approximately -41.89% in revenue growth as of 31 December, 2024. This signifies a reduction 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -5.22%, 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 -0.87%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.34%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Microchip Technology's debt-to-equity ratio stands notably higher than the industry average, reaching 1.12. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per 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.