Zacks Investment Research Downgrades Microchip Technology Incorporated (MCHP) to Hold
Microchip Technology Incorporated (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Microchip is one of the better-positioned companies in the semiconductor industry based on its product strength. The stock has outperformed the industry on a year-to-date basis. The company is benefiting from the addition of Atmel’s product portfolio, which it acquired in Apr 2016. Microchip reaffirmed its guidance for the second quarter and expects robust demand for its products to drive growth. We believe the company’s initiatives to bridge the gap between lead time, inventory and backlog will benefit earnings and revenues in the near to middle term. Additionally, expanding product portfolio driven by new launches will continue to increase customer base. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence.”
MCHP has been the subject of a number of other research reports. B. Riley reiterated a “buy” rating and set a $115.00 price target on shares of Microchip Technology in a research report on Tuesday, June 6th. Stifel Nicolaus raised their price target on Microchip Technology from $88.00 to $89.00 and gave the company a “buy” rating in a report on Tuesday, June 6th. Rosenblatt Securities restated a “buy” rating and set a $102.00 price objective (up from $100.00) on shares of Microchip Technology in a research note on Tuesday, June 6th. Credit Suisse Group restated an “outperform” rating and set a $90.00 price objective on shares of Microchip Technology in a research note on Wednesday, June 7th. Finally, Mizuho reaffirmed a “neutral” rating and issued a $80.00 price objective (up previously from $75.00) on shares of Microchip Technology in a report on Wednesday, June 7th. Six equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $89.44.
Shares of Microchip Technology (NASDAQ:MCHP) traded down 0.02% during midday trading on Wednesday, hitting $90.70. 462,723 shares of the company’s stock traded hands. Microchip Technology has a 52 week low of $57.52 and a 52 week high of $91.83. The stock has a market cap of $21.11 billion, a P/E ratio of 48.87 and a beta of 1.07. The company has a 50 day moving average of $86.74 and a 200 day moving average of $80.81.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 3rd. The semiconductor company reported $1.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.17. Microchip Technology had a return on equity of 34.33% and a net margin of 12.53%. The business had revenue of $972.10 million during the quarter, compared to analyst estimates of $944.87 million. During the same period in the prior year, the company posted $0.84 EPS. The business’s revenue for the quarter was up 21.6% compared to the same quarter last year. On average, equities analysts forecast that Microchip Technology will post $5.27 EPS for the current fiscal year.
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In other news, VP Stephen V. Drehobl sold 3,076 shares of the company’s stock in a transaction on Tuesday, August 22nd. The stock was sold at an average price of $81.89, for a total transaction of $251,893.64. Following the completion of the sale, the vice president now directly owns 14,263 shares of the company’s stock, valued at $1,167,997.07. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Wade F. Meyercord sold 1,300 shares of the stock in a transaction on Tuesday, August 15th. The shares were sold at an average price of $83.95, for a total value of $109,135.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 6,829 shares of company stock valued at $561,905. Corporate insiders own 2.13% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Grove Bank & Trust lifted its stake in Microchip Technology by 15.8% during the second quarter. Grove Bank & Trust now owns 1,390 shares of the semiconductor company’s stock valued at $107,000 after buying an additional 190 shares in the last quarter. Trust Co. of Vermont boosted its holdings in shares of Microchip Technology by 9.2% in the second quarter. Trust Co. of Vermont now owns 1,615 shares of the semiconductor company’s stock worth $125,000 after buying an additional 136 shares during the period. Smithfield Trust Co. boosted its holdings in shares of Microchip Technology by 0.4% in the second quarter. Smithfield Trust Co. now owns 1,626 shares of the semiconductor company’s stock worth $126,000 after buying an additional 7 shares during the period. Commonwealth Bank of Australia boosted its holdings in shares of Microchip Technology by 1.4% in the second quarter. Commonwealth Bank of Australia now owns 2,124 shares of the semiconductor company’s stock worth $163,000 after buying an additional 29 shares during the period. Finally, Harbour Capital Advisors LLC acquired a new position in shares of Microchip Technology in the first quarter worth about $173,000. 98.68% of the stock is currently 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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