Microchip Technology (NASDAQ:MCHP) Downgraded to “Underperform” Rating by Bank of America

Microchip Technology (NASDAQ:MCHP) was downgraded by Bank of America from a “neutral” rating to an “underperform” rating in a report issued on Monday, Marketbeat reports. They currently have a $65.00 price objective on the semiconductor company’s stock, down from their prior price objective of $80.00. Bank of America‘s target price would suggest a potential upside of 8.46% from the stock’s previous close.

Other analysts have also issued reports about the company. Piper Sandler lowered their target price on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 6th. Truist Financial downgraded Microchip Technology from a “buy” rating to a “hold” rating and dropped their price target for the company from $89.00 to $80.00 in a research report on Monday, September 23rd. Rosenblatt Securities reissued a “buy” rating and issued a $90.00 price target on shares of Microchip Technology in a report on Wednesday, November 6th. Citigroup reduced their target price on Microchip Technology from $92.00 to $82.00 and set a “buy” rating on the stock in a research note on Wednesday, November 6th. Finally, Susquehanna dropped their price target on Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a research note on Wednesday, November 6th. One 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’s stock. According to MarketBeat, Microchip Technology has a consensus rating of “Moderate Buy” and an average target price of $89.63.

Microchip Technology Price Performance

Shares of MCHP stock opened at $59.93 on Monday. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48. The firm’s 50-day moving average is $70.49 and its two-hundred day moving average is $79.80. The company has a market capitalization of $32.18 billion, a PE ratio of 41.91 and a beta of 1.50. Microchip Technology has a 12 month low of $57.96 and a 12 month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The firm had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter last year, the business posted $1.54 EPS. The company’s revenue was down 48.4% on a year-over-year basis. Analysts predict that Microchip Technology will post 1.33 earnings per share for the current year.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of MCHP. SeaCrest Wealth Management LLC boosted its stake in shares of Microchip Technology by 3.3% during the 2nd quarter. SeaCrest Wealth Management LLC now owns 4,147 shares of the semiconductor company’s stock worth $379,000 after purchasing an additional 131 shares during the period. Corundum Group Inc. increased its stake in Microchip Technology by 3.4% in the 3rd quarter. Corundum Group Inc. now owns 4,315 shares of the semiconductor company’s stock worth $346,000 after buying an additional 143 shares during the period. Commerzbank Aktiengesellschaft FI lifted its holdings in Microchip Technology by 4.5% during the 2nd 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 in the last quarter. Busey Bank boosted its position in Microchip Technology by 2.6% in the 2nd quarter. Busey Bank now owns 6,006 shares of the semiconductor company’s stock valued at $550,000 after buying an additional 155 shares during the period. Finally, Financial Advocates Investment Management grew its stake in Microchip Technology by 1.5% in the 3rd quarter. Financial Advocates Investment Management now owns 10,795 shares of the semiconductor company’s stock worth $867,000 after acquiring an additional 158 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Microchip Technology Company Profile

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.