Microchip Technology (NASDAQ:MCHP) Shares Gap Down - Should You Sell?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $75.26, but opened at $70.70. Microchip Technology shares last traded at $68.72, with a volume of 2,433,839 shares trading hands.

Wall Street Analyst Weigh In

MCHP has been the subject of a number of research analyst reports. Bank of America raised Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 target price for the company in a research note on Friday, May 9th. Truist Financial boosted their price objective on Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research report on Wednesday, June 18th. KeyCorp raised their target price on shares of Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. TD Cowen upped their price target on shares of Microchip Technology from $35.00 to $55.00 and gave the company a "hold" rating in a report on Friday, May 9th. Finally, Susquehanna increased their price objective on shares of Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday. Six investment analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $75.70.

Microchip Technology Stock Up 2.1%

The firm has a market capitalization of $37.35 billion, a P/E ratio of -6,921.00, a PEG ratio of 1.92 and a beta of 1.52. The firm's 50 day moving average is $67.83 and its two-hundred day moving average is $57.38. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.59 and a quick ratio of 1.47.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. The company had revenue of $970.50 million during the quarter, compared to the consensus estimate of $962.86 million. Microchip Technology had a negative net margin of 0.01% and a positive return on equity of 8.55%. The company's quarterly revenue was down 26.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.57 EPS. Research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Thursday, May 22nd were given a dividend of $0.455 per share. The ex-dividend date was Thursday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.63%. Microchip Technology's dividend payout ratio (DPR) is -18,200.00%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 2,015 shares of the company's stock in a transaction dated 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 owned 34,313 shares in the company, valued at approximately $1,913,979.14. This represents a 5.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 transaction of $29,980.86. Following the sale, the director owned 3,468 shares of the company's stock, valued at $210,472.92. This trade represents a 12.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

A number of institutional investors have recently modified their holdings of MCHP. Vanguard Group Inc. boosted its stake in Microchip Technology by 0.6% in the first quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock valued at $3,354,940,000 after buying an additional 390,269 shares in the last quarter. Invesco Ltd. raised its stake in Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after buying an additional 6,459,123 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its position in Microchip Technology by 0.9% during the first quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company's stock valued at $805,087,000 after acquiring an additional 152,434 shares during the last quarter. Boston Partners raised its position in shares of Microchip Technology by 35.3% in the 1st quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock worth $517,082,000 after acquiring an additional 2,795,650 shares in the last quarter. Finally, Amundi lifted its stake in shares of Microchip Technology by 22.7% in the 1st quarter. Amundi now owns 10,013,285 shares of the semiconductor company's stock valued at $484,743,000 after purchasing an additional 1,849,866 shares during the period. 91.51% of the stock is currently owned by institutional investors.

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.