Bank of America Upgrades Microchip Technology (NASDAQ:MCHP) to Neutral

Bank of America upgraded shares of Microchip Technology (NASDAQ:MCHP - Free Report) from an underperform rating to a neutral rating in a research note released on Friday morning, Marketbeat Ratings reports. They currently have $56.00 price target on the semiconductor company's stock.

A number of other equities analysts have also recently weighed in on MCHP. The Goldman Sachs Group dropped their price target on Microchip Technology from $72.00 to $63.00 and set a "neutral" rating on the stock in a research note on Friday, January 10th. Truist Financial lowered their target price on Microchip Technology from $56.00 to $43.00 and set a "hold" rating on the stock in a research note on Monday, April 21st. B. Riley reaffirmed a "buy" rating and set a $75.00 target price (down previously from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Raymond James reaffirmed a "strong-buy" rating and set a $60.00 target price (down previously from $95.00) on shares of Microchip Technology in a research note on Friday, February 7th. Finally, UBS Group lowered their price target on Microchip Technology from $70.00 to $55.00 and set a "buy" rating for the company in a research note on Tuesday, April 29th. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $67.42.

Microchip Technology Stock Performance

Shares of MCHP traded up $5.63 during midday trading on Friday, hitting $60.96. 20,946,050 shares of the stock traded hands, compared to its average volume of 8,457,269. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $100.57. The business's 50 day moving average price is $47.06 and its two-hundred day moving average price is $56.31. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25. The firm has a market capitalization of $32.79 billion, a PE ratio of 108.86 and a beta of 1.42.

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

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Investors of record on Thursday, May 22nd will be issued a dividend of $0.455 per share. The ex-dividend date is Thursday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.99%. Microchip Technology's dividend payout ratio (DPR) is currently -18,200.00%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,724 shares of the business's 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 sale, the chief financial officer now directly owns 33,272 shares in the company, valued at approximately $2,025,599.36. The trade was a 10.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mainstream Capital Management LLC purchased a new position in shares of Microchip Technology in the 4th quarter worth about $26,000. Rakuten Securities Inc. boosted its holdings in Microchip Technology by 309.5% during the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 359 shares during the period. OFI Invest Asset Management bought a new position in Microchip Technology during the 4th quarter valued at approximately $29,000. Garde Capital Inc. bought a new position in Microchip Technology during the 1st quarter valued at approximately $30,000. Finally, Financial Life Planners bought a new position in Microchip Technology during the 4th quarter valued at approximately $32,000. 91.51% of the stock is currently 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.