Microchip Technology Inc. (MCHP) Updates Q3 Earnings Guidance
Microchip Technology Inc. (NASDAQ:MCHP) issued an update on its third quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.87-0.94 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.90. The company issued revenue guidance of down 1-4% to ~$839-865 million, compared to the consensus revenue estimate of $847.72 million.
Shares of Microchip Technology Inc. (NASDAQ:MCHP) opened at 66.03 on Wednesday. The company has a market cap of $14.26 billion, a P/E ratio of 287.09 and a beta of 1.04. The company’s 50-day moving average price is $61.91 and its 200 day moving average price is $57.41. Microchip Technology Inc. has a one year low of $39.01 and a one year high of $66.81.
Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Monday, November 7th. The company reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.87 by $0.07. The company earned $873.80 million during 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%. Microchip Technology’s quarterly revenue was up 56.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.66 EPS. On average, equities research analysts anticipate that Microchip Technology Inc. will post $3.62 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Monday, December 5th. Investors of record on Monday, November 21st will be issued a dividend of $0.3605 per share. The ex-dividend date of this dividend is Thursday, November 17th. This is a boost from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.44 annualized dividend and a yield of 2.18%. Microchip Technology’s dividend payout ratio is currently 720.00%.
Several brokerages recently weighed in on MCHP. Jefferies Group restated a buy rating and set a $72.00 target price (up from $68.00) on shares of Microchip Technology in a report on Thursday, November 10th. B. Riley restated a buy rating and set a $78.00 target price on shares of Microchip Technology in a report on Sunday, November 13th. Zacks Investment Research upgraded Microchip Technology from a hold rating to a strong-buy rating and set a $72.00 target price for the company in a report on Friday, November 11th. Needham & Company LLC reiterated a buy rating and issued a $75.00 price objective (up previously from $70.00) on shares of Microchip Technology in a report on Tuesday, November 8th. Finally, Mizuho reiterated a neutral rating and issued a $67.00 price objective on shares of Microchip Technology in a report on Tuesday, November 8th. Four investment analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the stock. Microchip Technology presently has an average rating of Buy and a consensus price target of $64.61.
In other Microchip Technology news, VP Richard J. Simoncic sold 2,892 shares of Microchip Technology stock in a transaction on Monday, November 21st. The stock was sold at an average price of $64.90, for a total value of $187,690.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stephen V. Drehobl sold 3,494 shares of Microchip Technology stock in a transaction on Tuesday, November 22nd. The stock was sold at an average price of $65.16, for a total value of $227,669.04. Following the completion of the sale, the vice president now directly owns 13,710 shares of the company’s stock, valued at approximately $893,343.60. The disclosure for this sale can be found here. Corporate insiders own 2.50% of the company’s stock.
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Several hedge funds have recently bought and sold shares of the company. First Allied Advisory Services Inc. raised its stake in Microchip Technology by 2.2% in the second quarter. First Allied Advisory Services Inc. now owns 6,473 shares of the company’s stock worth $329,000 after buying an additional 138 shares during the last quarter. Azimuth Capital Management LLC raised its stake in Microchip Technology by 0.8% in the second quarter. Azimuth Capital Management LLC now owns 18,680 shares of the company’s stock worth $948,000 after buying an additional 150 shares during the last quarter. Stonebridge Capital Advisors LLC raised its stake in Microchip Technology by 0.4% in the second quarter. Stonebridge Capital Advisors LLC now owns 55,453 shares of the company’s stock worth $2,815,000 after buying an additional 245 shares during the last quarter. Cleararc Capital Inc. raised its stake in Microchip Technology by 5.3% in the second quarter. Cleararc Capital Inc. now owns 5,209 shares of the company’s stock worth $264,000 after buying an additional 263 shares during the last quarter. Finally, WFG Advisors LP raised its stake in Microchip Technology by 5.0% in the second quarter. WFG Advisors LP now owns 9,383 shares of the company’s stock worth $476,000 after buying an additional 447 shares during the last quarter. 99.54% of the stock is owned by institutional investors and hedge funds.
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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