Microchip Technology (NASDAQ:MCHP) Shares Gap Up to $86.19

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report)'s share price gapped up before the market opened on Wednesday . The stock had previously closed at $86.19, but opened at $90.79. Microchip Technology shares last traded at $91.01, with a volume of 1,153,804 shares changing hands.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Susquehanna reissued a "positive" rating and set a $100.00 target price on shares of Microchip Technology in a research note on Monday, April 8th. Evercore ISI began coverage on shares of Microchip Technology in a research note on Tuesday, April 16th. They issued an "outperform" rating and a $106.00 price target for the company. TD Cowen upped their price target on shares of Microchip Technology from $75.00 to $80.00 and gave the stock a "market perform" rating in a research note on Friday, February 2nd. Wolfe Research raised shares of Microchip Technology from a "peer perform" rating to an "outperform" rating and set a $105.00 price target for the company in a research note on Thursday, January 18th. Finally, The Goldman Sachs Group reduced their price target on shares of Microchip Technology from $87.00 to $77.00 and set a "neutral" rating for the company in a research note on Friday, February 2nd. Six equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $92.50.

Microchip Technology Trading Up 5.2 %

The firm has a market capitalization of $49.00 billion, a price-to-earnings ratio of 21.19, a price-to-earnings-growth ratio of 2.55 and a beta of 1.65. The firm's 50 day moving average is $86.81 and its 200 day moving average is $84.50. The company has a quick ratio of 0.58, a current ratio of 0.98 and a debt-to-equity ratio of 0.57.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, February 1st. The semiconductor company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.04 by $0.04. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The business had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same quarter in the previous year, the business earned $1.48 earnings per share. The firm's revenue was down 18.6% compared to the same quarter last year. Equities analysts forecast that Microchip Technology Incorporated will post 4.64 earnings per share for the current year.

Microchip Technology Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 8th. Stockholders of record on Friday, February 23rd were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.99%. This is a positive change from Microchip Technology's previous quarterly dividend of $0.44. Microchip Technology's payout ratio is currently 42.06%.

Insider Activity

In other news, Director Karlton D. Johnson sold 370 shares of the stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total transaction of $31,080.00. Following the transaction, the director now owns 1,789 shares in the company, valued at approximately $150,276. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, Director Karlton D. Johnson sold 370 shares of the company's stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total transaction of $31,080.00. Following the completion of the sale, the director now directly owns 1,789 shares of the company's stock, valued at approximately $150,276. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO James Eric Bjornholt sold 1,970 shares of the company's stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now directly owns 32,893 shares of the company's stock, valued at $2,759,722.70. The disclosure for this sale can be found here. 2.07% of the stock is owned by company insiders.

Institutional Trading of Microchip Technology

A number of hedge funds have recently bought and sold shares of the stock. Principal Financial Group Inc. boosted its holdings in Microchip Technology by 0.9% in the 4th quarter. Principal Financial Group Inc. now owns 9,279,166 shares of the semiconductor company's stock valued at $836,795,000 after purchasing an additional 87,203 shares during the period. Northern Trust Corp boosted its holdings in Microchip Technology by 1.1% in the 3rd quarter. Northern Trust Corp now owns 7,521,409 shares of the semiconductor company's stock valued at $587,046,000 after purchasing an additional 80,431 shares during the period. Norges Bank bought a new stake in Microchip Technology in the 4th quarter valued at $672,196,000. Van ECK Associates Corp boosted its holdings in Microchip Technology by 16.0% in the 4th quarter. Van ECK Associates Corp now owns 5,177,014 shares of the semiconductor company's stock valued at $466,863,000 after purchasing an additional 714,376 shares during the period. Finally, Mizuho Markets Americas LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $225,800,000. 91.51% of the stock is owned by institutional investors.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells 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 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.