Microchip Technology (NASDAQ:MCHP) Downgraded by StockNews.com

StockNews.com downgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a sell rating in a research note published on Tuesday morning.

A number of other analysts also recently issued reports on MCHP. Susquehanna reduced their price objective on Microchip Technology from $115.00 to $105.00 and set a positive rating on the stock in a research note on Friday, August 2nd. TD Cowen lowered their price target on shares of Microchip Technology from $90.00 to $80.00 and set a hold rating for the company in a report on Friday, August 2nd. Piper Sandler upgraded Microchip Technology from a neutral rating to an overweight rating and lifted their price target for the stock from $90.00 to $100.00 in a research report on Friday, August 16th. B. Riley cut their target price on Microchip Technology from $110.00 to $103.00 and set a buy rating on the stock in a research report on Friday, August 2nd. Finally, Morgan Stanley lowered Microchip Technology from an overweight rating to an equal weight rating and decreased their price target for the company from $102.00 to $100.00 in a report on Thursday, July 11th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have given a buy rating to the company. According to data from MarketBeat, Microchip Technology presently has an average rating of Moderate Buy and an average target price of $99.47.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $80.59 on Tuesday. The firm has a market cap of $43.24 billion, a price-to-earnings ratio of 23.14 and a beta of 1.53. The firm has a fifty day moving average price of $79.97 and a 200 day moving average price of $87.42. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $100.57. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.52 by $0.01. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.24 billion. During the same quarter in the prior year, the firm earned $1.56 EPS. The business’s revenue was down 45.8% on a year-over-year basis. As a group, sell-side analysts expect that Microchip Technology will post 1.74 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were given a dividend of $0.454 per share. The ex-dividend date of this dividend was Thursday, August 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 dividend on an annualized basis and a yield of 2.25%. Microchip Technology’s payout ratio is 52.45%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of the firm’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the transaction, the chief financial officer now owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.07% of the company’s stock.

Institutional Trading of Microchip Technology

A number of hedge funds have recently bought and sold shares of the stock. Financial Counselors Inc. raised its position in shares of Microchip Technology by 1.1% in the 1st quarter. Financial Counselors Inc. now owns 10,689 shares of the semiconductor company’s stock worth $959,000 after acquiring an additional 119 shares in the last quarter. SeaCrest Wealth Management LLC boosted its position in Microchip Technology by 3.3% during the second quarter. SeaCrest Wealth Management LLC now owns 4,147 shares of the semiconductor company’s stock valued at $379,000 after purchasing an additional 131 shares in the last quarter. Meridian Wealth Management LLC grew its stake in Microchip Technology by 5.1% in the first quarter. Meridian Wealth Management LLC now owns 2,810 shares of the semiconductor company’s stock valued at $252,000 after purchasing an additional 137 shares during the last quarter. Horizon Bancorp Inc. IN raised its holdings in Microchip Technology by 11.8% in the first quarter. Horizon Bancorp Inc. IN now owns 1,370 shares of the semiconductor company’s stock worth $123,000 after purchasing an additional 145 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI lifted its position in shares of Microchip Technology by 4.5% during the second quarter. Commerzbank Aktiengesellschaft FI now owns 3,470 shares of the semiconductor company’s stock valued at $318,000 after buying an additional 148 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.