StockNews.com Lowers Microchip Technology (NASDAQ:MCHP) to Sell

StockNews.com cut shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a sell rating in a report released on Tuesday.

Several other equities analysts also recently commented on MCHP. TD Cowen dropped their price target on shares of Microchip Technology from $90.00 to $80.00 and set a hold rating for the company in a research note on Friday, August 2nd. B. Riley cut their price target on Microchip Technology from $110.00 to $103.00 and set a buy rating on the stock in a report on Friday, August 2nd. Citigroup decreased their price objective on Microchip Technology from $104.00 to $92.00 and set a buy rating for the company in a research note on Friday, August 2nd. Rosenblatt Securities restated a buy rating and set a $100.00 target price on shares of Microchip Technology in a research note on Wednesday, July 31st. Finally, Susquehanna decreased their price target on shares of Microchip Technology from $115.00 to $105.00 and set a positive rating for the company in a research note on Friday, August 2nd. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the company. Based on data from MarketBeat, Microchip Technology has an average rating of Moderate Buy and an average price target of $99.47.

Microchip Technology Trading Up 5.5 %

Shares of NASDAQ MCHP opened at $80.31 on Tuesday. The company has a current ratio of 1.94, a quick ratio of 1.08 and a debt-to-equity ratio of 0.96. The stock has a market capitalization of $43.09 billion, a PE ratio of 23.14 and a beta of 1.53. Microchip Technology has a twelve month low of $68.75 and a twelve month high of $100.57. The stock has a fifty day simple moving average of $80.19 and a 200-day simple moving average of $87.47.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.01. The company 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%. The business’s revenue for the quarter was down 45.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.56 earnings per share. On average, equities analysts forecast that Microchip Technology will post 1.74 earnings per share for the current year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Thursday, August 22nd were given a $0.454 dividend. The ex-dividend date of this dividend was Thursday, August 22nd. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.26%. Microchip Technology’s dividend payout ratio is 52.45%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction that occurred on 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 sale, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at $2,710,445.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.07% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds have recently made changes to their positions in the business. Healthcare of Ontario Pension Plan Trust Fund raised its stake in Microchip Technology by 2,390.5% during 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 acquiring an additional 2,199,290 shares during the last quarter. Heritage Wealth Management Inc. acquired a new position in shares of Microchip Technology in the second quarter valued at approximately $322,000. Sanctuary Advisors LLC acquired a new stake in shares of Microchip Technology during the second quarter worth $14,243,000. Strategic Investment Solutions Inc. IL purchased a new position in Microchip Technology in the 2nd quarter valued at $119,000. Finally, Heritage Oak Wealth Advisors LLC acquired a new position in Microchip Technology in the 2nd quarter valued at $714,000. Institutional investors and hedge funds 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.