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 microprocessors markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides development tools that enable system designers to program microcontroller and microprocessor products for specific applications; field-programmable gate array (FPGA) products; and analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. Microchip Technology Incorporated was incorporated in 1989 and is headquartered in Chandler, Arizona.
Analysts Set New Price Targets
A number of research analysts have weighed in on MCHP shares. Morgan Stanley raised their price objective on shares of Microchip Technology from $81.00 to $82.00 and gave the company an "overweight" rating in a research note on Wednesday, August 3rd. Cowen raised their price objective on shares of Microchip Technology from $60.00 to $72.00 and gave the company an "outperform" rating in a research note on Wednesday, August 3rd. Wells Fargo & Company raised their price target on shares of Microchip Technology from $60.00 to $75.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 3rd. Mizuho raised their price target on shares of Microchip Technology from $72.00 to $75.00 and gave the company a "neutral" rating in a research report on Wednesday, August 3rd. Finally, The Goldman Sachs Group dropped their price target on shares of Microchip Technology from $76.00 to $61.00 in a research report on Friday, July 15th. Four investment analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $89.73.
Microchip Technology Stock Performance
Shares of MCHP traded down $0.67 during trading hours on Tuesday, hitting $73.61. The company's stock had a trading volume of 9,198 shares, compared to its average volume of 3,978,991. The company has a market cap of $40.67 billion, a price-to-earnings ratio of 27.31, a PEG ratio of 0.94 and a beta of 1.62. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.78 and a quick ratio of 1.17. The business has a 50 day simple moving average of $63.61 and a two-hundred day simple moving average of $68.19. Microchip Technology has a 52-week low of $54.33 and a 52-week high of $90.00.
Microchip Technology (NASDAQ:MCHP - Get Rating) last posted its earnings results on Tuesday, August 2nd. The semiconductor company reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.10. Microchip Technology had a net margin of 21.34% and a return on equity of 44.90%. During the same period in the prior year, the business earned $0.88 earnings per share. On average, equities analysts expect that Microchip Technology will post 5.38 earnings per share for the current fiscal year.
Microchip Technology Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 2nd. Investors of record on Friday, August 19th will be paid a dividend of $0.301 per share. The ex-dividend date is Thursday, August 18th. This represents a $1.20 annualized dividend and a yield of 1.64%. This is a boost from Microchip Technology's previous quarterly dividend of $0.28. Microchip Technology's payout ratio is currently 40.44%.
Insider Activity at Microchip Technology
In other news, CEO Ganesh Moorthy acquired 8,000 shares of Microchip Technology stock in a transaction that occurred on Friday, June 17th. The stock was bought at an average price of $57.29 per share, with a total value of $458,320.00. Following the completion of the purchase, the chief executive officer now owns 720,313 shares in the company, valued at $41,266,731.77. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, CEO Ganesh Moorthy acquired 8,000 shares of Microchip Technology stock in a transaction that occurred on Friday, June 17th. The stock was bought at an average price of $57.29 per share, with a total value of $458,320.00. Following the completion of the purchase, the chief executive officer now owns 720,313 shares in the company, valued at $41,266,731.77. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Mitchell R. Little sold 1,970 shares of the business's stock in a transaction that occurred on Thursday, May 19th. The shares were sold at an average price of $66.29, for a total transaction of $130,591.30. Following the transaction, the vice president now directly owns 16,730 shares of the company's stock, valued at approximately $1,109,031.70. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 8,970 shares of company stock valued at $597,211. Corporate insiders own 2.00% of the company's stock.
