Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have received a consensus rating of “Moderate Buy” from the nineteen research firms that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $74.37.

A number of brokerages have recently weighed in on MCHP. Piper Sandler restated an “overweight” rating and issued a $65.00 target price (down previously from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. StockNews.com downgraded Microchip Technology from a “hold” rating to a “sell” rating in a research note on Monday, February 10th. B. Riley reiterated a “buy” rating and issued a $75.00 price objective (down previously from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Needham & Company LLC upped their price objective on Microchip Technology from $60.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday, March 4th. Finally, Stifel Nicolaus dropped their price objective on Microchip Technology from $90.00 to $87.00 and set a “buy” rating on the stock in a research note on Tuesday, December 3rd.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $53.50 on Monday. Microchip Technology has a twelve month low of $50.21 and a twelve month high of $100.57. The stock’s 50 day moving average price is $56.51 and its 200-day moving average price is $65.58. The company has a market capitalization of $28.77 billion, a PE ratio of 95.54 and a beta of 1.52. The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. On average, equities analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were issued a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.82 annualized dividend and a dividend yield of 3.40%. Microchip Technology’s payout ratio is currently 325.00%.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,724 shares of the company’s stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total value of $226,717.12. Following the transaction, the chief financial officer now owns 33,272 shares of the company’s stock, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MCHP. Summit Global Investments increased its stake in Microchip Technology by 2.5% in the third quarter. Summit Global Investments now owns 8,463 shares of the semiconductor company’s stock valued at $679,000 after acquiring an additional 207 shares during the last quarter. United Bank increased its stake in Microchip Technology by 21.0% in the third quarter. United Bank now owns 9,871 shares of the semiconductor company’s stock valued at $793,000 after acquiring an additional 1,712 shares during the last quarter. Verdence Capital Advisors LLC bought a new position in Microchip Technology in the third quarter valued at $449,000. Crossmark Global Holdings Inc. increased its stake in Microchip Technology by 5.3% in the third quarter. Crossmark Global Holdings Inc. now owns 331,752 shares of the semiconductor company’s stock valued at $26,636,000 after acquiring an additional 16,649 shares during the last quarter. Finally, Venturi Wealth Management LLC increased its stake in Microchip Technology by 5.7% in the third quarter. Venturi Wealth Management LLC now owns 8,190 shares of the semiconductor company’s stock valued at $658,000 after acquiring an additional 442 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.