Microchip Technology Inc. (MCHP) Receives Average Recommendation of “Buy” from Brokerages
Shares of Microchip Technology Inc. (NASDAQ:MCHP) have received an average recommendation of “Buy” from the sixteen research firms that are presently covering the company. Four research analysts have rated the stock with a hold recommendation, ten have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $64.61.
MCHP has been the topic of several research reports. Mizuho initiated coverage on Microchip Technology in a report on Friday, September 30th. They issued a “neutral” rating and a $67.00 price target on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $75.00 price target (up previously from $70.00) on shares of Microchip Technology in a report on Tuesday, November 8th. Bank of America Corp. raised Microchip Technology from a “neutral” rating to a “buy” rating and set a $75.00 price target on the stock in a report on Tuesday, November 8th. Stifel Nicolaus upped their price target on Microchip Technology from $60.00 to $64.00 and gave the company a “buy” rating in a report on Tuesday, August 9th. Finally, Goldman Sachs Group Inc. raised Microchip Technology from a “sell” rating to a “neutral” rating and upped their price target for the company from $49.00 to $57.00 in a report on Friday, November 4th.
Shares of Microchip Technology (NASDAQ:MCHP) traded down 1.56% on Friday, hitting $64.43. The company had a trading volume of 1,530,264 shares. The company has a 50 day moving average of $61.31 and a 200-day moving average of $56.47. The company has a market cap of $13.92 billion, a price-to-earnings ratio of 280.13 and a beta of 1.04. Microchip Technology has a 12-month low of $39.01 and a 12-month high of $65.90.
Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Monday, November 7th. The company reported $0.94 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.87 by $0.07. The company had revenue of $873.80 million for the quarter, compared to analysts’ expectations of $860.96 million. Microchip Technology had a return on equity of 27.29% and a net margin of 1.77%. The firm’s revenue was up 56.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.66 earnings per share. On average, analysts forecast that Microchip Technology will post $3.62 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 5th. Investors of record on Monday, November 21st will be issued a $0.3605 dividend. The ex-dividend date is Thursday, November 17th. This is a boost from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.44 dividend on an annualized basis and a yield of 2.20%. Microchip Technology’s dividend payout ratio is currently 720.00%.
In other Microchip Technology news, CFO James Eric Bjornholt sold 2,461 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 $149,997.95. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Steve Sanghi sold 26,308 shares of the business’s stock in a transaction on Wednesday, November 9th. The stock was sold at an average price of $64.20, for a total transaction of $1,688,973.60. The disclosure for this sale can be found here. 2.50% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Price T Rowe Associates Inc. MD raised its position in Microchip Technology by 19.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 20,786,371 shares of the company’s stock worth $1,291,665,000 after buying an additional 3,405,285 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Microchip Technology by 8.3% in the second quarter. Vanguard Group Inc. now owns 20,394,628 shares of the company’s stock worth $1,035,230,000 after buying an additional 1,558,859 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its position in shares of Microchip Technology by 1.5% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 5,491,575 shares of the company’s stock worth $341,246,000 after buying an additional 78,866 shares in the last quarter. Aristotle Capital Management LLC raised its position in shares of Microchip Technology by 256.5% in the second quarter. Aristotle Capital Management LLC now owns 4,433,716 shares of the company’s stock worth $225,055,000 after buying an additional 3,189,879 shares in the last quarter. Finally, Edge Asset Management Inc. raised its position in shares of Microchip Technology by 2.8% in the second quarter. Edge Asset Management Inc. now owns 4,158,704 shares of the company’s stock worth $211,095,000 after buying an additional 113,642 shares in the last quarter. 99.96% of the stock is owned by hedge funds and other institutional investors.
About Microchip Technology
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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