Microchip Technology MCHP underwent analysis by 18 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 11 | 2 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 2 | 0 | 0 |
| 2M Ago | 6 | 0 | 2 | 0 | 0 |
| 3M Ago | 3 | 0 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Microchip Technology, presenting an average target of $63.28, a high estimate of $85.00, and a low estimate of $43.00. This current average has increased by 5.89% from the previous average price target of $59.76.
Investigating Analyst Ratings: An Elaborate Study
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 |
|---|---|---|---|---|---|
| Pradeep Ramani | UBS | Raises | Buy | $85.00 | $65.00 |
| William Stein | Truist Securities | Raises | Hold | $64.00 | $52.00 |
| Matthew Prisco | Cantor Fitzgerald | Announces | Neutral | $70.00 | - |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $83.00 | $69.00 |
| Vijay Rakesh | Mizuho | Raises | Outperform | $78.00 | $68.00 |
| Christopher Danely | Citigroup | Raises | Buy | $68.00 | $55.00 |
| Pradeep Ramani | UBS | Raises | Buy | $65.00 | $60.00 |
| Kevin Cassidy | Rosenblatt | Raises | Buy | $70.00 | $63.00 |
| William Stein | Truist Securities | Raises | Hold | $52.00 | $43.00 |
| Pradeep Ramani | UBS | Raises | Buy | $60.00 | $55.00 |
| Melissa Fairbanks | Raymond James | Raises | Strong Buy | $65.00 | $60.00 |
| Joseph Moore | Morgan Stanley | Raises | Equal-Weight | $50.00 | $39.00 |
| Christopher Danely | Citigroup | Raises | Buy | $55.00 | $50.00 |
| Quinn Bolton | Needham | Maintains | Buy | $66.00 | $66.00 |
| Pradeep Ramani | UBS | Lowers | Buy | $55.00 | $70.00 |
| William Stein | Truist Securities | Lowers | Hold | $43.00 | $56.00 |
| Tore Svanberg | Stifel | Lowers | Buy | $60.00 | $80.00 |
| Christopher Danely | Citigroup | Lowers | Buy | $50.00 | $65.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Microchip Technology. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.
Delving into Microchip Technology's Background
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.
Financial Insights: Microchip Technology
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Microchip Technology's financials over 3M reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -26.8% 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: Microchip Technology's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -16.16%, 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 -2.39%, the company may encounter challenges in delivering 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 -1.01%, 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 0.8. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyst Ratings: What Are They?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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