Microchip Technology (NASDAQ:MCHP) Stock Rating Cut to Hold at Wall Street Zen

Microchip Technology (NASDAQ:MCHP - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Several other research analysts have also commented on the company. Zacks Research lowered Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. Cantor Fitzgerald decreased their price objective on Microchip Technology from $125.00 to $100.00 and set an "overweight" rating on the stock in a research report on Friday, November 6th. UBS Group reaffirmed a "buy" rating and issued a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Citigroup lowered their price objective on Microchip Technology from $95.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, November 6th. Finally, Truist Financial dropped their target price on Microchip Technology from $90.00 to $62.00 and set a "hold" rating for the company in a report on Friday, November 6th. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $90.18.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP traded down $0.40 on Friday, reaching $61.68. The company's stock had a trading volume of 11,883,011 shares, compared to its average volume of 16,061,035. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a market cap of $33.57 billion, a P/E ratio of 46.73, a PEG ratio of 0.70 and a beta of 1.84. The company has a 50-day simple moving average of $73.73 and a 200 day simple moving average of $79.07. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.33 and a current ratio of 2.24.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.94 by $0.03. The firm had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 14.96% and a return on equity of 20.32%. The business's quarterly revenue was up 42.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.35 EPS. As a group, equities research analysts anticipate that Microchip Technology will post 3.19 EPS for the current fiscal year.

Insider Activity at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares of the company's stock, valued at approximately $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. 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 Investors Weigh In On Microchip Technology

Institutional investors and hedge funds have recently modified their holdings of the business. Headlands Technologies LLC purchased a new stake in shares of Microchip Technology during the third quarter valued at $957,000. Empowered Funds LLC grew its holdings in shares of Microchip Technology by 22.7% in the third quarter. Empowered Funds LLC now owns 72,358 shares of the semiconductor company's stock worth $5,627,000 after purchasing an additional 13,367 shares during the last quarter. LHM Inc. grew its holdings in shares of Microchip Technology by 12.6% in the third quarter. LHM Inc. now owns 103,257 shares of the semiconductor company's stock worth $8,030,000 after purchasing an additional 11,592 shares during the last quarter. State Board of Administration of Florida Retirement System increased its stake in Microchip Technology by 6.4% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 496,808 shares of the semiconductor company's stock worth $38,637,000 after buying an additional 29,959 shares during the period. Finally, Xcelsior Advisor Partners LLC increased its stake in Microchip Technology by 16.5% in the 3rd quarter. Xcelsior Advisor Partners LLC now owns 2,654 shares of the semiconductor company's stock worth $206,000 after buying an additional 375 shares during the period. 91.51% of the stock is owned by institutional investors.

About Microchip Technology

Microchip Technology is a semiconductor company that develops and supplies components and systems for embedded control and connected applications. Its products include microcontrollers, microprocessors, analog and power-management devices, field-programmable gate arrays, timing products, and connectivity and security solutions. The company's products are used in a range of markets, including automotive, industrial, communications, data center, consumer, and aerospace and defense. Microchip also provides development tools, software, and technical support to help customers design and build electronic systems.

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