Microchip Technology (NASDAQ:MCHP) Trading Up 8.2% - Here's What Happened

Key Points

• Microchip Technology's stock price increased by 8.2% to $65.94 after trading at a high of $65.20, but the trading volume was 82% lower than its average.
• Several analysts have raised their price targets for Microchip Technology, with Evercore ISI setting a new target of $83.00 and B. Riley increasing theirs to $75.00, indicating a positive consensus with a rating of Moderate Buy.
• The company announced a quarterly dividend of $0.455 per share, yielding approximately 2.8%, set to be paid on September 5th.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) shot up 8.2% during mid-day trading on Tuesday . The stock traded as high as $65.20 and last traded at $65.94. 1,860,085 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 10,496,487 shares. The stock had previously closed at $60.95.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Evercore ISI raised their price target on shares of Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a research report on Thursday, June 12th. Rosenblatt Securities raised their price target on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. B. Riley boosted their target price on shares of Microchip Technology from $60.00 to $75.00 and gave the company a "buy" rating in a report on Friday, May 9th. Cantor Fitzgerald started coverage on shares of Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price objective for the company. Finally, Truist Financial upped their price objective on Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a research report on Wednesday, June 18th. Six equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $76.58.

Microchip Technology Price Performance

The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The stock has a market cap of $35.46 billion, a P/E ratio of -193.26, a price-to-earnings-growth ratio of 1.94 and a beta of 1.55. The company's fifty day simple moving average is $69.75 and its 200-day simple moving average is $58.34.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. Microchip Technology's revenue was down 13.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.53 EPS. As a group, sell-side analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be paid a $0.455 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 annualized dividend and a yield of 2.8%. Microchip Technology's dividend payout ratio (DPR) is -535.29%.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, Director Karlton D. Johnson sold 494 shares of the stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director directly owned 3,468 shares in the company, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 2,015 shares of the company's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer owned 34,313 shares in the company, valued at $1,913,979.14. This represents a 5.55% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of MCHP. Sagespring Wealth Partners LLC bought a new position in Microchip Technology in the 4th quarter worth $235,000. MSH Capital Advisors LLC purchased a new stake in Microchip Technology during the 4th quarter valued at approximately $260,000. Ally Financial Inc. raised its holdings in shares of Microchip Technology by 46.2% during the 4th quarter. Ally Financial Inc. now owns 19,000 shares of the semiconductor company's stock worth $1,090,000 after acquiring an additional 6,000 shares in the last quarter. Dean Investment Associates LLC bought a new stake in Microchip Technology in the fourth quarter worth $2,351,000. Finally, CANADA LIFE ASSURANCE Co raised its stake in shares of Microchip Technology by 1.4% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 562,004 shares of the semiconductor company's stock valued at $32,218,000 after acquiring an additional 7,620 shares during the period. 91.51% of the stock is currently owned by 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.