Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Rating of "Moderate Buy" from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the nineteen research firms that are currently covering the stock, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $67.42.

A number of brokerages have recently weighed in on MCHP. UBS Group increased their target price on Microchip Technology from $55.00 to $60.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Stifel Nicolaus raised their price objective on Microchip Technology from $60.00 to $70.00 and gave the company a "buy" rating in a report on Friday, May 9th. Citigroup raised their price objective on Microchip Technology from $50.00 to $55.00 and gave the company a "buy" rating in a report on Friday, May 9th. Needham & Company LLC reaffirmed a "buy" rating and set a $66.00 target price on shares of Microchip Technology in a research report on Friday, May 9th. Finally, Raymond James lifted their price objective on Microchip Technology from $60.00 to $65.00 and gave the stock a "strong-buy" rating in a research report on Friday, May 9th.

Microchip Technology Trading Up 1.1%

Shares of NASDAQ:MCHP traded up $0.65 during midday trading on Friday, hitting $58.11. The company had a trading volume of 6,573,464 shares, compared to its average volume of 8,622,098. The firm has a fifty day simple moving average of $48.46 and a 200 day simple moving average of $55.08. The company has a current ratio of 2.25, a quick ratio of 1.23 and a debt-to-equity ratio of 1.12. The stock has a market cap of $31.30 billion, a price-to-earnings ratio of 103.77 and a beta of 1.42. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $98.10.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. The company had revenue of $970.50 million for the quarter, compared to analyst estimates of $962.86 million. During the same period in the previous year, the company posted $0.57 earnings per share. The company's quarterly revenue was down 26.8% compared to the same quarter last year. On average, analysts predict that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd will be given a $0.455 dividend. The ex-dividend date of this dividend is Thursday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 3.13%. Microchip Technology's payout ratio is presently -18,200.00%.

Insider Buying and Selling

In related news, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director now owns 3,468 shares in the company, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of Microchip Technology stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer now owns 34,313 shares in the company, 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. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently bought and sold shares of the company. Mainstream Capital Management LLC acquired a new position in Microchip Technology during the 4th quarter worth approximately $26,000. Rakuten Securities Inc. lifted its position in shares of Microchip Technology by 309.5% during the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company's stock worth $27,000 after buying an additional 359 shares during the last quarter. OFI Invest Asset Management purchased a new stake in Microchip Technology in the 4th quarter valued at $29,000. Financial Life Planners purchased a new stake in Microchip Technology in the 4th quarter valued at $32,000. Finally, Kohmann Bosshard Financial Services LLC purchased a new position in Microchip Technology during the 4th quarter worth $34,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.