Microchip Technology Incorporated (NASDAQ:MCHP) Receives Consensus Rating of “Moderate Buy” from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has been assigned an average rating of “Moderate Buy” from the nineteen research firms that are currently covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation and fifteen have given a buy recommendation to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $99.95.

A number of brokerages have recently commented on MCHP. JPMorgan Chase & Co. cut their price target on Microchip Technology from $110.00 to $100.00 and set an “overweight” rating for the company in a report on Friday, August 2nd. Bank of America downgraded shares of Microchip Technology from a “buy” rating to a “neutral” rating and reduced their price target for the company from $110.00 to $90.00 in a report on Friday, August 2nd. Truist Financial dropped their price objective on shares of Microchip Technology from $96.00 to $89.00 and set a “buy” rating on the stock in a report on Friday, August 2nd. Needham & Company LLC reduced their target price on shares of Microchip Technology from $100.00 to $96.00 and set a “buy” rating for the company in a research note on Monday, August 5th. Finally, Morgan Stanley lowered Microchip Technology from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $102.00 to $100.00 in a research note on Thursday, July 11th.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,154 shares of the firm’s stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $81.50, for a total transaction of $175,551.00. Following the completion of the sale, the chief financial officer now directly 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 Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Healthcare of Ontario Pension Plan Trust Fund boosted its position in Microchip Technology by 2,390.5% in the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,291,290 shares of the semiconductor company’s stock valued at $209,653,000 after buying an additional 2,199,290 shares during the last quarter. Heritage Wealth Management Inc. acquired a new position in shares of Microchip Technology during the second quarter valued at $322,000. Sanctuary Advisors LLC bought a new position in Microchip Technology in the second quarter valued at about $14,243,000. Strategic Investment Solutions Inc. IL acquired a new stake in Microchip Technology in the second quarter worth about $119,000. Finally, Heritage Oak Wealth Advisors LLC bought a new stake in Microchip Technology during the 2nd quarter worth about $714,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Stock Down 2.3 %

Shares of MCHP stock opened at $77.01 on Monday. The stock’s 50 day simple moving average is $81.15 and its 200 day simple moving average is $87.73. Microchip Technology has a twelve month low of $68.75 and a twelve month 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. The company has a market capitalization of $41.32 billion, a price-to-earnings ratio of 22.19 and a beta of 1.53.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.01. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. Microchip Technology’s revenue was down 45.8% compared to the same quarter last year. During the same period last year, the business posted $1.56 EPS. As a group, research analysts predict that Microchip Technology will post 1.74 EPS for the current year.

Microchip Technology Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were given a $0.454 dividend. The ex-dividend date 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 2.36%. Microchip Technology’s payout ratio is 52.16%.

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.