9 analysts have shared their evaluations of Microchip Technology MCHP during the recent three months, expressing a mix of bullish and bearish perspectives.
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 | 3 | 5 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 2 | 5 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $89.56, a high estimate of $100.00, and a low estimate of $80.00. This current average represents a 8.61% decrease from the previous average price target of $98.00.
Understanding Analyst Ratings: A Comprehensive 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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tore Svanberg | Stifel | Lowers | Buy | $96.00 | $100.00 |
| Harsh Kumar | Piper Sandler | Announces | Neutral | $80.00 | - |
| Christopher Danely | Citigroup | Announces | Buy | $100.00 | - |
| Harsh Kumar | Piper Sandler | Lowers | Overweight | $80.00 | $100.00 |
| Christopher Rolland | Susquehanna | Lowers | Positive | $90.00 | $95.00 |
| Joseph Moore | Morgan Stanley | Lowers | Overweight | $90.00 | $96.00 |
| Weston Twigg | Keybanc | Lowers | Overweight | $90.00 | $95.00 |
| Rajvindra Gill | Needham | Lowers | Buy | $85.00 | $100.00 |
| Christopher Rolland | Susquehanna | Lowers | Positive | $95.00 | $100.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microchip Technology. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Microchip Technology's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
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.
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.
Key Indicators: Microchip Technology's Financial Health
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Microchip Technology's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 8.74%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 29.57%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Microchip Technology's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.66%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Microchip Technology's ROA stands out, surpassing industry averages. With an impressive ROA of 4.03%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Microchip Technology's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.88, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyst Ratings: Simplified
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.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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