Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a "buy" rating to a "hold" rating in a report released on Thursday, Zacks.com reports. They presently have a $111.00 price objective on the semiconductor company's stock. Zacks Investment Research's price target indicates a potential upside of 7.64% from the stock's previous close.
According to Zacks, "Microchip is expected to benefit from solid demand for its microcontrollers. Moreover, the company is anticipated to witness strength in the medical end market, driven by growth in demand for hospital equipment. Improving demand across office equipment and communication infrastructures, courtesy of requirement for cloud computing solutions amid the coronavirus crisis-led work-from-home wave also bodes well. Further, Microchip improved its guidance for fiscal first quarter due to easing of supply chain disruptions and reopening of customers’ factories. Notably, shares of the company have outperformed the industry on a year-to-date basis. However, sluggish demand across automotive, industrial and consumer home appliance end-markets owing to coronavirus-induced macroeconomic weakness is likely to weigh on the top-line, at least in the near term."
Several other research firms have also weighed in on MCHP. B. Riley upgraded shares of Microchip Technology from a "neutral" rating to a "buy" rating and boosted their target price for the company from $85.00 to $125.00 in a research note on Wednesday, June 3rd. Loop Capital initiated coverage on shares of Microchip Technology in a research note on Friday, June 19th. They set a "buy" rating and a $120.00 target price for the company. BidaskClub raised shares of Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, May 1st. Cfra reduced their price target on shares of Microchip Technology from $110.00 to $95.00 and set a "hold" rating for the company in a report on Friday, May 8th. Finally, SunTrust Banks boosted their price target on shares of Microchip Technology from $94.00 to $117.00 and gave the company a "buy" rating in a report on Wednesday, June 3rd. Seven investment analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company. The stock currently has a consensus rating of "Buy" and an average target price of $113.04.
MCHP stock opened at $103.12 on Thursday. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.35 and a quick ratio of 0.94. Microchip Technology has a 1-year low of $53.15 and a 1-year high of $113.28. The firm has a fifty day moving average price of $97.71 and a two-hundred day moving average price of $93.43. The firm has a market cap of $24.57 billion, a price-to-earnings ratio of 46.45, a PEG ratio of 1.34 and a beta of 1.61.
Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, May 7th. The semiconductor company reported $1.46 earnings per share for the quarter, beating the consensus estimate of $1.35 by $0.11. Microchip Technology had a net margin of 10.82% and a return on equity of 23.63%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same quarter in the previous year, the firm earned $1.48 earnings per share. The firm's revenue for the quarter was down .2% compared to the same quarter last year. As a group, analysts expect that Microchip Technology will post 5.3 EPS for the current fiscal year.
In other Microchip Technology news, VP Richard J. Simoncic sold 3,958 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $86.92, for a total value of $344,029.36. Following the completion of the sale, the vice president now directly owns 19,213 shares of the company's stock, valued at approximately $1,669,993.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Ganesh Moorthy sold 12,000 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $106.72, for a total transaction of $1,280,640.00. The disclosure for this sale can be found here. Insiders sold a total of 26,336 shares of company stock valued at $2,684,160 over the last three months. 2.21% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of MCHP. Quadrant Capital Group LLC lifted its holdings in Microchip Technology by 14.9% in the 4th quarter. Quadrant Capital Group LLC now owns 2,330 shares of the semiconductor company's stock valued at $231,000 after acquiring an additional 303 shares during the last quarter. Piedmont Investment Advisors Inc. raised its holdings in Microchip Technology by 10.2% during the 4th quarter. Piedmont Investment Advisors Inc. now owns 9,407 shares of the semiconductor company's stock worth $985,000 after buying an additional 868 shares during the period. Envestnet Asset Management Inc. raised its holdings in Microchip Technology by 11.2% during the 4th quarter. Envestnet Asset Management Inc. now owns 156,779 shares of the semiconductor company's stock worth $16,418,000 after buying an additional 15,741 shares during the period. Prudential Financial Inc. raised its holdings in Microchip Technology by 3.9% during the 4th quarter. Prudential Financial Inc. now owns 237,178 shares of the semiconductor company's stock worth $24,837,000 after buying an additional 8,855 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in Microchip Technology by 0.9% during the 4th quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 15,389 shares of the semiconductor company's stock worth $1,612,000 after buying an additional 135 shares during the period.
About Microchip Technology
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.
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