Microchip Technology (MCHP) Shares Gap Down Following Analyst Downgrade
Microchip Technology Inc. (NASDAQ:MCHP) gapped down before the market opened on Monday after Needham & Company LLC lowered their price target on the stock from $130.00 to $120.00. The stock had previously closed at $86.60, but opened at $87.50. Needham & Company LLC currently has a strong-buy rating on the stock. Microchip Technology shares last traded at $87.74, with a volume of 201090 shares.
Several other research analysts have also weighed in on MCHP. Piper Jaffray Companies lifted their target price on Microchip Technology from $110.00 to $150.00 and gave the stock an “overweight” rating in a report on Friday, July 27th. B. Riley lifted their target price on Microchip Technology from $123.00 to $135.00 and gave the stock a “buy” rating in a report on Friday, June 1st. SunTrust Banks lifted their target price on Microchip Technology from $115.00 to $117.00 and gave the stock a “buy” rating in a report on Wednesday, May 30th. JPMorgan Chase & Co. began coverage on Microchip Technology in a report on Tuesday, June 5th. They set an “overweight” rating and a $125.00 target price on the stock. Finally, BidaskClub lowered Microchip Technology from a “buy” rating to a “hold” rating in a report on Wednesday, April 18th. Five analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $115.76.
In other news, VP Stephen V. Drehobl sold 4,696 shares of the business’s stock in a transaction dated Tuesday, May 22nd. The stock was sold at an average price of $93.55, for a total value of $439,310.80. Following the sale, the vice president now directly owns 19,711 shares in the company, valued at $1,843,964.05. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 2,308 shares of the business’s stock in a transaction dated Tuesday, May 22nd. The shares were sold at an average price of $93.55, for a total value of $215,913.40. The disclosure for this sale can be found here. Insiders own 2.13% of the company’s stock.
The firm has a market capitalization of $20.58 billion, a PE ratio of 16.77, a PEG ratio of 1.01 and a beta of 1.13. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.66 and a quick ratio of 1.43.
Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, August 9th. The semiconductor company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.13. Microchip Technology had a return on equity of 41.19% and a net margin of 2.85%. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same quarter in the prior year, the company posted $1.31 earnings per share. Microchip Technology’s revenue was up 24.7% on a year-over-year basis. equities analysts expect that Microchip Technology Inc. will post 6.18 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 4th. Investors of record on Tuesday, August 21st will be issued a dividend of $0.364 per share. This represents a $1.46 annualized dividend and a yield of 1.67%. The ex-dividend date is Monday, August 20th. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.36. Microchip Technology’s dividend payout ratio is presently 27.94%.
About Microchip Technology (NASDAQ:MCHP)
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.
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