Microchip Technology (NASDAQ:MCHP) Sets New 12-Month Low – Here’s What Happened

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $71.63 and last traded at $71.89, with a volume of 175636 shares trading hands. The stock had previously closed at $72.87.

Analysts Set New Price Targets

MCHP has been the topic of several analyst reports. StockNews.com downgraded Microchip Technology from a “hold” rating to a “sell” rating in a report on Thursday. Jefferies Financial Group dropped their price objective on Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Susquehanna decreased their target price on shares of Microchip Technology from $95.00 to $90.00 and set a “positive” rating on the stock in a research note on Wednesday, November 6th. Bank of America cut shares of Microchip Technology from a “buy” rating to a “neutral” rating and dropped their price target for the company from $110.00 to $90.00 in a research report on Friday, August 2nd. Finally, B. Riley decreased their price objective on shares of Microchip Technology from $110.00 to $103.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company’s stock. According to MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and an average target price of $92.00.

Microchip Technology Stock Performance

The company has a quick ratio of 1.08, a current ratio of 0.88 and a debt-to-equity ratio of 0.71. The firm has a market cap of $38.08 billion, a P/E ratio of 50.96 and a beta of 1.53. The business has a fifty day simple moving average of $76.73 and a 200-day simple moving average of $84.93.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.03. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The company had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period last year, the business earned $1.54 EPS. Microchip Technology’s quarterly revenue was down 48.4% compared to the same quarter last year. On average, sell-side analysts predict that Microchip Technology Incorporated will post 1.69 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 22nd will be paid a dividend of $0.455 per share. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.57%. Microchip Technology’s payout ratio is presently 127.27%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the transaction, the chief financial officer now owns 33,257 shares of the company’s stock, valued at $2,710,445.50. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently made changes to their positions in MCHP. Prospera Private Wealth LLC bought a new position in shares of Microchip Technology during the third quarter valued at $29,000. Peterson Financial Group Inc. purchased a new position in shares of Microchip Technology during the third quarter valued at approximately $34,000. Pathway Financial Advisers LLC bought a new stake in Microchip Technology in the 1st quarter worth approximately $39,000. Versant Capital Management Inc raised its stake in Microchip Technology by 148.8% during the 2nd quarter. Versant Capital Management Inc now owns 530 shares of the semiconductor company’s stock valued at $48,000 after buying an additional 317 shares during the last quarter. Finally, Wolff Wiese Magana LLC lifted its holdings in shares of Microchip Technology by 55.2% during the 3rd quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock valued at $49,000 after buying an additional 218 shares during the period. 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.