Deep Dive Into Microchip Technology Stock: Analyst Perspectives (18 Ratings)
18 analysts have shared their evaluations of Microchip Technology (NASDAQ:MCHP) during the recent three months, expressing a mix of bullish and bearish perspectives.
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 | 10 | 3 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 3 | 0 | 0 | 0 | 0 |
| 3M Ago | 7 | 3 | 4 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $101.78, a high estimate of $115.00, and a low estimate of $85.00. Surpassing the previous average price target of $91.53, the current average has increased by 11.2%.
Investigating Analyst Ratings: An Elaborate Study
A clear picture of Microchip Technology's perception among financial experts is painted with a thorough analysis 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 |
|---|---|---|---|---|---|
| Joseph Moore | Morgan Stanley | Lowers | Equal-Weight | $100.00 | $102.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $115.00 | $85.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $115.00 | $85.00 |
| 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 | - |
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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Microchip Technology's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
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.
Get to Know Microchip Technology Better
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.
Understanding the Numbers: Microchip Technology's Finances
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.
Decline in Revenue: Over the 3 months period, Microchip Technology faced challenges, resulting in a decline of approximately -40.62% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Microchip Technology's net margin excels beyond industry benchmarks, reaching 11.67%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Microchip Technology's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.25%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Microchip Technology's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.97%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.91, caution is advised due to increased financial risk.
The Basics of Analyst Ratings
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.