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

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has earned a consensus rating of "Moderate Buy" from the nineteen brokerages that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, four have issued a hold recommendation, thirteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $66.79.

A number of research firms recently commented on MCHP. Stifel Nicolaus dropped their target price on shares of Microchip Technology from $80.00 to $60.00 and set a "buy" rating on the stock in a research report on Thursday, April 17th. Truist Financial dropped their price objective on Microchip Technology from $56.00 to $43.00 and set a "hold" rating on the stock in a report on Monday, April 21st. KeyCorp reduced their target price on Microchip Technology from $70.00 to $60.00 and set an "overweight" rating for the company in a report on Friday, February 7th. Needham & Company LLC raised their price target on Microchip Technology from $60.00 to $66.00 and gave the stock a "buy" rating in a research note on Tuesday, March 4th. Finally, Mizuho boosted their price objective on Microchip Technology from $58.00 to $68.00 and gave the company an "outperform" rating in a research note on Tuesday, March 4th.

Insider Activity

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

Institutional Investors Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently made changes to their positions in MCHP. Pallas Capital Advisors LLC acquired a new position in Microchip Technology in the 4th quarter valued at about $5,917,000. Consolidated Planning Corp purchased a new stake in shares of Microchip Technology during the 4th quarter worth about $308,000. one8zero8 LLC acquired a new stake in shares of Microchip Technology in the fourth quarter worth $384,000. Symphony Financial Ltd. Co. purchased a new position in Microchip Technology in the fourth quarter valued at about $520,000. Finally, Truist Financial Corp lifted its position in Microchip Technology by 5.8% during the 4th quarter. Truist Financial Corp now owns 959,439 shares of the semiconductor company's stock worth $55,024,000 after acquiring an additional 52,222 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Stock Up 0.3 %

Shares of MCHP traded up $0.16 during midday trading on Tuesday, reaching $46.08. The stock had a trading volume of 10,845,081 shares, compared to its average volume of 8,258,129. The company has a market cap of $24.78 billion, a price-to-earnings ratio of 82.29 and a beta of 1.51. The company's fifty day simple moving average is $48.79 and its two-hundred day simple moving average is $57.99. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $100.57. The company has a debt-to-equity ratio of 1.12, a current ratio of 2.25 and a quick ratio of 1.23.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share (EPS) 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%. Equities research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Monday, February 24th were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 3.95%. The ex-dividend date of this dividend was Monday, February 24th. Microchip Technology's payout ratio is 325.00%.

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.