Assessing Microchip Technology: Insights From 16 Financial Analysts

16 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.

Analysts have recently evaluated Microchip Technology and provided 12-month price targets. The average target is $63.81, accompanied by a high estimate of $90.00 and a low estimate of $43.00. A 14.57% drop is evident in the current average compared to the previous average price target of $74.69.

Analyzing Analyst Ratings: A Detailed 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.

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: 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 explore the dynamics of price targets, providing estimates for the future value of Microchip Technology's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Microchip Technology's market standing. Stay informed and make well-considered decisions with 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.

Microchip Technology: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Microchip Technology's revenue growth over a period of 3M 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 averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -0.87%, the company may face hurdles in achieving optimal financial returns.

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: Microchip Technology's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.12, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.