Microchip Technology Incorporated to Issue Quarterly Dividend of $0.46 (NASDAQ:MCHP)

Key Points

• Microchip Technology Incorporated announced a quarterly dividend of $0.46 per share, with a dividend yield of 2.7%, scheduled for September 5th for shareholders of record on August 22nd.
• The company reported $0.17 EPS for the last quarter, missing the consensus estimate by $0.06, and has a current payout ratio of 72.2%, which is anticipated to rise significantly in the coming year.
• Analysts have a consensus "Moderate Buy" rating on Microchip Technology, with price targets ranging from $66.00 to $85.00, indicating positive future expectations despite recent earnings misses.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) announced a quarterly dividend on Thursday, August 7th, RTT News reports. Shareholders of record on Friday, August 22nd will be given a dividend of 0.455 per share by the semiconductor company on Friday, September 5th. This represents a c) dividend on an annualized basis and a dividend yield of 2.7%.

Microchip Technology has a payout ratio of 72.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $0.96 per share next year, which means the company may not be able to cover its $1.82 annual dividend with an expected future payout ratio of 189.6%.

Microchip Technology Trading Up 0.1%

Shares of NASDAQ MCHP traded up $0.05 during midday trading on Thursday, reaching $66.22. The stock had a trading volume of 13,566,810 shares, compared to its average volume of 10,487,865. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.47 and a current ratio of 2.59. The company's 50 day moving average price is $69.39 and its 200 day moving average price is $58.02. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $82.87. The firm has a market cap of $35.74 billion, a price-to-earnings ratio of -6,622.00, a price-to-earnings-growth ratio of 1.94 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, August 7th. The semiconductor company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.06). Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. As a group, sell-side analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on MCHP. Rosenblatt Securities boosted their target price on Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. KeyCorp boosted their price objective on Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Stifel Nicolaus lifted their target price on Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Needham & Company LLC reissued a "buy" rating and issued a $66.00 price target on shares of Microchip Technology in a report on Friday, May 9th. Finally, Evercore ISI raised their price objective on shares of Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a report on Thursday, June 12th. Six analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average price target of $74.42.

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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