Microchip Technology (NASDAQ:MCHP) Trading 7.4% Higher - Here's Why

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) traded up 7.4% during trading on Wednesday . The company traded as high as $61.97 and last traded at $62.15. 6,293,783 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 8,885,386 shares. The stock had previously closed at $57.86.

Analysts Set New Price Targets

A number of research analysts have issued reports on MCHP shares. Evercore ISI reiterated an "outperform" rating and issued a $95.00 target price (down previously from $101.00) on shares of Microchip Technology in a research report on Wednesday, November 6th. KeyCorp dropped their price target on Microchip Technology from $70.00 to $60.00 and set an "overweight" rating on the stock in a research note on Friday, February 7th. Morgan Stanley dropped their price target on Microchip Technology from $71.00 to $58.00 and set an "equal weight" rating on the stock in a research note on Tuesday, February 4th. Jefferies Financial Group lowered their target price on Microchip Technology from $100.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday, November 6th. Finally, The Goldman Sachs Group decreased their price target on Microchip Technology from $72.00 to $63.00 and set a "neutral" rating for the company in a report on Friday, January 10th. Two analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have given 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 an average rating of "Moderate Buy" and a consensus target price of $77.11.

Microchip Technology Price Performance

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 stock has a market capitalization of $32.84 billion, a P/E ratio of 109.05 and a beta of 1.50. The firm has a 50-day moving average price of $56.70 and a 200 day moving average price of $68.03.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. On average, analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.98%. The ex-dividend date is Monday, February 24th. Microchip Technology's payout ratio is 325.00%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MCHP. Norges Bank bought a new stake in shares of Microchip Technology in the 4th quarter worth $452,627,000. Barrow Hanley Mewhinney & Strauss LLC grew its holdings in Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock valued at $306,541,000 after purchasing an additional 3,912,895 shares during the period. Van ECK Associates Corp lifted its position in shares of Microchip Technology by 39.3% in the fourth quarter. Van ECK Associates Corp now owns 11,093,007 shares of the semiconductor company's stock valued at $636,184,000 after acquiring an additional 3,131,807 shares in the last quarter. Franklin Resources Inc. lifted its position in shares of Microchip Technology by 90.0% in the fourth quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company's stock valued at $364,792,000 after acquiring an additional 3,013,162 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its position in shares of Microchip Technology by 9,901.6% in the fourth quarter. Assenagon Asset Management S.A. now owns 2,857,654 shares of the semiconductor company's stock valued at $163,886,000 after acquiring an additional 2,829,082 shares in the last quarter. Hedge funds and other 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.