Microchip Technology (NASDAQ:MCHP) Stock Crosses Above 50 Day Moving Average – Time to Sell?

Microchip Technology Incorporated (NASDAQ:MCHP) shares crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $75.19 and traded as high as $76.57. Microchip Technology shares last traded at $75.90, with a volume of 7,944,856 shares changing hands.

Analyst Upgrades and Downgrades

MCHP has been the subject of several research analyst reports. Truist Financial decreased their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Friday, August 7th. Cantor Fitzgerald reissued an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, September 9th. UBS Group restated a “buy” rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Finally, TD Cowen decreased their price target on shares of Microchip Technology from $90.00 to $75.00 and set a “hold” rating for the company in a report on Monday, October 19th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $97.71.

Microchip Technology Trading Up 2.5%

The company has a 50 day simple moving average of $75.19 and a two-hundred day simple moving average of $79.39. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. The firm has a market cap of $41.21 billion, a PE ratio of 113.29, a P/E/G ratio of 0.51 and a beta of 1.77.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The firm had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same period last year, the business posted $0.27 earnings per share. The company’s revenue for the quarter was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Analysts expect that Microchip Technology Incorporated will post 3.20 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were issued a $0.4550 dividend. This represents a $1.82 annualized dividend and a yield of 2.4%. The ex-dividend date was Monday, August 24th. Microchip Technology’s dividend payout ratio is 271.64%.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp raised its holdings in shares of Microchip Technology by 2.9% during the second quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock worth $2,631,273,000 after purchasing an additional 821,147 shares during the last quarter. Van ECK Associates Corp lifted its position in Microchip Technology by 18.3% during the second quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock valued at $750,102,000 after purchasing an additional 1,272,838 shares during the period. Artemis Wealth Advisors LLC purchased a new stake in Microchip Technology in the second quarter valued at $541,413,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Microchip Technology in the second quarter valued at $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Microchip Technology by 23.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock worth $461,520,000 after purchasing an additional 962,362 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.