Microchip Technology Inc. (MCHP) Rating Increased to Strong-Buy at Zacks Investment Research
Microchip Technology Inc. (NASDAQ:MCHP) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Friday. The firm currently has a $72.00 price target on the stock. Zacks Investment Research’s price objective would suggest a potential upside of 13.33% from the stock’s previous close.
According to Zacks, “Microchip is one of the better-positioned companies in the semiconductor industry based on its product strength. The company's expanding product portfolio enables it to continuously outperform the broader industry. In addition, accretive acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. These factors primairly drove the impressive second-quarter fiscal 2017 results. However, an uncertain macroeconomic environment and foreign exchange rate fluctuations could hamper the growth momentum of the company. In addition, high integration costs continue to be a drag on profitability. The semiconductor industry is also intensely competitive and is characterized by price erosion and rapid technological change.”
Other equities analysts have also issued reports about the stock. B. Riley reaffirmed a “buy” rating and set a $74.00 target price on shares of Microchip Technology in a research report on Sunday, August 14th. Jefferies Group raised their target price on shares of Microchip Technology from $56.00 to $68.00 and gave the stock a “buy” rating in a research report on Tuesday, August 9th. Citigroup Inc. raised their target price on shares of Microchip Technology from $54.00 to $64.00 and gave the stock a “buy” rating in a research report on Tuesday, August 9th. Credit Suisse Group AG reaffirmed a “buy” rating and set a $67.00 target price on shares of Microchip Technology in a research report on Tuesday, August 9th. Finally, Needham & Company LLC raised their target price on shares of Microchip Technology from $60.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, August 9th. Four analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus target price of $64.61.
Microchip Technology (NASDAQ:MCHP) opened at 63.53 on Friday. Microchip Technology has a 12-month low of $39.01 and a 12-month high of $65.61. The stock’s 50 day moving average price is $60.96 and its 200 day moving average price is $56.22. The company has a market capitalization of $13.72 billion, a PE ratio of 276.22 and a beta of 1.04.
Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Monday, November 7th. The company reported $0.94 EPS for the quarter, topping the Zacks’ consensus estimate of $0.87 by $0.07. The business had revenue of $873.80 million for the quarter, compared to analyst estimates of $860.96 million. Microchip Technology had a net margin of 1.77% and a return on equity of 27.29%. The company’s quarterly revenue was up 56.2% compared to the same quarter last year. During the same period last year, the company posted $0.66 earnings per share. On average, equities analysts anticipate that Microchip Technology will post $3.62 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, December 5th. Investors of record on Monday, November 21st will be given a dividend of $0.3605 per share. The ex-dividend date is Thursday, November 17th. This is an increase from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.44 dividend on an annualized basis and a yield of 2.27%. Microchip Technology’s payout ratio is currently 720.00%.
In related news, CEO Steve Sanghi sold 26,308 shares of the business’s stock in a transaction on Wednesday, November 9th. The shares were sold at an average price of $64.20, for a total transaction of $1,688,973.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Stephen V. Drehobl sold 4,454 shares of the business’s stock in a transaction on Monday, August 22nd. The shares were sold at an average price of $60.95, for a total transaction of $271,471.30. Following the transaction, the vice president now owns 13,622 shares of the company’s stock, valued at $830,260.90. The disclosure for this sale can be found here. Corporate insiders own 2.50% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Davis R M Inc. boosted its position in Microchip Technology by 1.1% in the second quarter. Davis R M Inc. now owns 584,802 shares of the company’s stock worth $29,685,000 after buying an additional 6,418 shares during the last quarter. Fenimore Asset Management Inc. boosted its position in Microchip Technology by 0.9% in the third quarter. Fenimore Asset Management Inc. now owns 901,115 shares of the company’s stock worth $55,995,000 after buying an additional 7,850 shares during the last quarter. Legal & General Group Plc boosted its position in Microchip Technology by 0.8% in the first quarter. Legal & General Group Plc now owns 913,454 shares of the company’s stock worth $44,030,000 after buying an additional 7,332 shares during the last quarter. RNC Capital Management LLC boosted its position in Microchip Technology by 1.0% in the second quarter. RNC Capital Management LLC now owns 372,870 shares of the company’s stock worth $18,927,000 after buying an additional 3,760 shares during the last quarter. Finally, LPL Financial LLC boosted its position in Microchip Technology by 9.9% in the first quarter. LPL Financial LLC now owns 127,968 shares of the company’s stock worth $6,225,000 after buying an additional 11,556 shares during the last quarter. Institutional investors own 99.96% of the company’s stock.
Microchip Technology Company Profile
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.
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