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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twenty research firms that are covering the company, MarketBeat reports. Five analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $75.10.

Several research analysts have recently commented on MCHP shares. Evercore ISI lifted their price objective on Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a report on Thursday, June 12th. Rosenblatt Securities increased their price target on shares of Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a research report on Friday, May 30th. Morgan Stanley increased their price target on shares of Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a research report on Friday, May 9th. Bank of America upgraded Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 price target on the stock in a report on Friday, May 9th. Finally, Wall Street Zen upgraded Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th.

Microchip Technology Trading Down 0.7%

Shares of MCHP stock opened at $74.56 on Friday. 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 business has a 50-day moving average price of $64.36 and a two-hundred day moving average price of $56.33. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $96.98. The firm has a market cap of $40.24 billion, a P/E ratio of -7,456.00, a price-to-earnings-growth ratio of 2.22 and a beta of 1.52.

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

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.44%. The ex-dividend date of this dividend was Thursday, May 22nd. Microchip Technology's payout ratio is presently -18,200.00%.

Insider Buying and Selling

In other news, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total value of $29,980.86. Following the completion of the transaction, the director owned 3,468 shares in the company, valued at $210,472.92. This trade represents a 12.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $55.78, for a total value 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. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Norges Bank bought a new position in Microchip Technology during the 4th quarter valued at approximately $452,627,000. Orbis Allan Gray Ltd bought a new position in Microchip Technology during the 1st quarter valued at approximately $369,612,000. Invesco Ltd. increased its position in Microchip Technology by 63.0% during the 1st quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock valued at $808,787,000 after buying an additional 6,459,123 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Microchip Technology by 138.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after buying an additional 5,136,154 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC increased its position in Microchip Technology by 273.2% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock valued at $306,541,000 after buying an additional 3,912,895 shares in 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.

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