Microchip Technology (NASDAQ:MCHP) Earns Buy Rating from Analysts at Jefferies Financial Group

Jefferies Financial Group initiated coverage on shares of Microchip Technology (NASDAQ:MCHP) in a research report sent to investors on Monday morning, Marketbeat.com reports. The firm issued a buy rating and a $115.00 price target on the semiconductor company’s stock.

MCHP has been the topic of several other reports. Citigroup lifted their target price on shares of Microchip Technology from $100.00 to $104.00 and gave the stock a buy rating in a research report on Tuesday, May 7th. Truist Financial lifted their price target on shares of Microchip Technology from $93.00 to $96.00 and gave the stock a buy rating in a report on Tuesday, May 7th. UBS Group boosted their price objective on shares of Microchip Technology from $95.00 to $103.00 and gave the stock a buy rating in a research note on Tuesday, May 7th. Susquehanna raised their target price on Microchip Technology from $100.00 to $105.00 and gave the stock a positive rating in a research report on Tuesday, May 7th. Finally, Stifel Nicolaus upped their price target on Microchip Technology from $98.00 to $102.00 and gave the company a buy rating in a research report on Wednesday, May 1st. Six analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of Moderate Buy and a consensus price target of $99.39.

Microchip Technology Trading Up 1.6 %

Shares of MCHP opened at $95.36 on Monday. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.67 and a current ratio of 1.20. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $96.14. The firm has a market cap of $51.53 billion, a price-to-earnings ratio of 27.48, a PEG ratio of 3.20 and a beta of 1.60. The business’s fifty day moving average is $89.16 and its 200-day moving average is $86.03.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.57. Microchip Technology had a return on equity of 36.78% and a net margin of 24.98%. The business had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter in the prior year, the firm earned $1.56 EPS. The business’s revenue for the quarter was down 40.6% compared to the same quarter last year. Equities analysts anticipate that Microchip Technology will post 2.4 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 5th. Stockholders of record on Wednesday, May 22nd will be paid a $0.452 dividend. The ex-dividend date of this dividend is Tuesday, May 21st. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 annualized dividend and a dividend yield of 1.90%. Microchip Technology’s dividend payout ratio (DPR) is currently 51.87%.

Insider Buying and Selling

In other news, VP Stephen V. Drehobl sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the sale, the vice president now owns 82,203 shares in the company, valued at $7,470,608.64. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In related news, CFO James Eric Bjornholt sold 1,970 shares of the firm’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the transaction, the chief financial officer now owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Stephen V. Drehobl sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total value of $908,800.00. Following the sale, the vice president now directly owns 82,203 shares of the company’s stock, valued at $7,470,608.64. The disclosure for this sale can be found here. 2.07% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Norges Bank purchased a new stake in Microchip Technology in the 4th quarter valued at $672,196,000. Mizuho Markets Americas LLC bought a new stake in shares of Microchip Technology in the 3rd quarter worth $225,800,000. Clearbridge Investments LLC raised its holdings in shares of Microchip Technology by 18,944.8% in the first quarter. Clearbridge Investments LLC now owns 1,973,045 shares of the semiconductor company’s stock valued at $177,002,000 after purchasing an additional 1,962,685 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Microchip Technology by 2.9% during the first quarter. Vanguard Group Inc. now owns 68,583,723 shares of the semiconductor company’s stock valued at $6,152,646,000 after purchasing an additional 1,921,497 shares in the last quarter. Finally, Truist Financial Corp boosted its holdings in Microchip Technology by 324.0% during the fourth quarter. Truist Financial Corp now owns 1,815,013 shares of the semiconductor company’s stock worth $163,678,000 after purchasing an additional 1,386,924 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.