Evercore ISI Initiates Coverage on Microchip Technology (NASDAQ:MCHP)

Evercore ISI assumed coverage on shares of Microchip Technology (NASDAQ:MCHP - Free Report) in a research report released on Tuesday, Marketbeat Ratings reports. The brokerage issued an outperform rating and a $106.00 price target on the semiconductor company's stock.

Other equities analysts have also recently issued reports about the company. StockNews.com cut Microchip Technology from a buy rating to a hold rating in a report on Friday, December 29th. The Goldman Sachs Group lowered their price objective on shares of Microchip Technology from $87.00 to $77.00 and set a neutral rating for the company in a report on Friday, February 2nd. Susquehanna reaffirmed a positive rating and set a $100.00 target price on shares of Microchip Technology in a report on Monday, April 8th. Rosenblatt Securities reissued a buy rating and issued a $100.00 price target on shares of Microchip Technology in a research note on Tuesday, January 30th. Finally, Truist Financial reduced their price objective on Microchip Technology from $97.00 to $93.00 and set a buy rating on the stock in a research note on Tuesday, January 9th. Six investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $92.25.

Microchip Technology Price Performance

Shares of MCHP traded up $0.23 during trading hours on Tuesday, reaching $85.93. 3,418,637 shares of the company's stock traded hands, compared to its average volume of 5,542,894. The company has a current ratio of 0.98, a quick ratio of 0.58 and a debt-to-equity ratio of 0.57. The firm's 50 day simple moving average is $86.55 and its 200-day simple moving average is $84.24. The stock has a market cap of $46.44 billion, a PE ratio of 20.08, a price-to-earnings-growth ratio of 2.61 and a beta of 1.65. Microchip Technology has a 12 month low of $68.75 and a 12 month high of $94.30.

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

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 8th. Shareholders of record on Friday, February 23rd were issued a $0.45 dividend. The ex-dividend date was Thursday, February 22nd. This is a positive change from Microchip Technology's previous quarterly dividend of $0.44. This represents a $1.80 annualized dividend and a yield of 2.09%. Microchip Technology's dividend payout ratio is 42.06%.

Insider Transactions at Microchip Technology

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of Microchip Technology by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 66,662,226 shares of the semiconductor company's stock worth $6,011,600,000 after purchasing an additional 408,835 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Microchip Technology by 1.9% in the first quarter. Geode Capital Management LLC now owns 11,714,851 shares of the semiconductor company's stock worth $979,918,000 after acquiring an additional 217,223 shares in the last quarter. Principal Financial Group Inc. grew its stake in shares of Microchip Technology by 0.9% in the fourth quarter. Principal Financial Group Inc. now owns 9,279,166 shares of the semiconductor company's stock worth $836,795,000 after acquiring an additional 87,203 shares during the last quarter. Northern Trust Corp increased its holdings in shares of Microchip Technology by 1.7% during the first quarter. Northern Trust Corp now owns 7,553,578 shares of the semiconductor company's stock valued at $567,576,000 after acquiring an additional 123,806 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Microchip Technology in the 4th quarter worth about $672,196,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Company Profile

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.