Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Microchip Technology Incorporated (NASDAQ:MCHP) has an average recommendation of "Moderate Buy" from nineteen research analysts, with thirteen rating it as a buy and one as a strong buy.
• The company's stock experienced a slight decline of 1.4%, opening at $66.17, while analysts have set an average price target of $74.42.
• Microchip Technology reported quarterly earnings surpassing expectations with earnings per share of $0.11, although revenue fell 26.8% compared to the previous year.

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have received an average recommendation of "Moderate Buy" from the nineteen research firms that are presently covering the firm, Marketbeat reports. Five research 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. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $74.4211.

MCHP has been the subject of a number of recent research reports. Rosenblatt Securities boosted their target price on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Raymond James Financial boosted their price objective on shares of Microchip Technology from $60.00 to $65.00 and gave the stock a "strong-buy" rating in a research note on Friday, May 9th. Morgan Stanley raised their target price on shares of Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a research note on Friday, May 9th. TD Cowen lifted their price target on shares of Microchip Technology from $35.00 to $55.00 and gave the stock a "hold" rating in a report on Friday, May 9th. Finally, Cantor Fitzgerald assumed coverage on Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price target on the stock.

Microchip Technology Stock Down 1.4%

Microchip Technology stock opened at $66.17 on Thursday. The company has a quick ratio of 1.47, a current ratio of 2.59 and a debt-to-equity ratio of 0.80. The firm has a market cap of $35.71 billion, a P/E ratio of -6,617.00, a P/E/G ratio of 1.94 and a beta of 1.55. The business has a fifty day moving average of $69.22 and a two-hundred day moving average of $57.96. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $82.87.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, topping the consensus estimate of $0.10 by $0.01. Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. The firm had revenue of $970.50 million during the quarter, compared to analyst estimates of $962.86 million. During the same period in the previous year, the company posted $0.57 EPS. The business's revenue for the quarter was down 26.8% compared to the same quarter last year. On average, analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Karlton D. Johnson sold 494 shares of the company's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total value of $29,980.86. Following the sale, the director directly owned 3,468 shares of the company's stock, valued at $210,472.92. This represents a 12.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the transaction, the chief financial officer directly owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently modified their holdings of MCHP. MCF Advisors LLC lifted its holdings in Microchip Technology by 211.2% in the second quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 321 shares during the period. Carderock Capital Management Inc. acquired a new stake in shares of Microchip Technology during the 2nd quarter worth approximately $39,000. Painted Porch Advisors LLC purchased a new position in shares of Microchip Technology during the 2nd quarter valued at approximately $40,000. Fourth Dimension Wealth LLC boosted its holdings in Microchip Technology by 98.7% during the second quarter. Fourth Dimension Wealth LLC now owns 600 shares of the semiconductor company's stock worth $42,000 after buying an additional 298 shares in the last quarter. Finally, Garde Capital Inc. acquired a new stake in Microchip Technology during the first quarter valued at $30,000. Institutional investors and hedge funds own 91.51% of the company's stock.

About Microchip Technology

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.

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