Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Recommendation of “Moderate Buy” from Brokerages

Microchip Technology Incorporated (NASDAQ:MCHP) has earned an average recommendation of “Moderate Buy” from the nineteen brokerages that are presently covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $92.00.

MCHP has been the subject of a number of analyst reports. B. Riley lowered their price target on shares of Microchip Technology from $110.00 to $103.00 and set a “buy” rating for the company in a report on Friday, August 2nd. Truist Financial downgraded shares of Microchip Technology from a “buy” rating to a “hold” rating and reduced their price target for the stock from $89.00 to $80.00 in a research note on Monday, September 23rd. Jefferies Financial Group lowered their target price on Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a report on Wednesday, November 6th. Rosenblatt Securities reiterated a “buy” rating and set a $90.00 price objective on shares of Microchip Technology in a research note on Wednesday, November 6th. Finally, KeyCorp cut their target price on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 6th.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $68.17 on Friday. The company has a 50 day moving average of $73.71 and a 200 day moving average of $82.42. The company has a quick ratio of 0.48, a current ratio of 0.88 and a debt-to-equity ratio of 0.71. Microchip Technology has a twelve month low of $62.63 and a twelve month high of $100.57. The firm has a market cap of $36.61 billion, a P/E ratio of 47.67 and a beta of 1.53.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.03. The business had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The business’s revenue for the quarter was down 48.4% on a year-over-year basis. During the same period last year, the firm posted $1.54 earnings per share. As a group, research analysts expect that Microchip Technology will post 1.38 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 22nd will be issued a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.67%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s payout ratio is currently 127.27%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Prospera Private Wealth LLC purchased a new position in Microchip Technology in the 3rd quarter valued at approximately $29,000. Peterson Financial Group Inc. purchased a new position in shares of Microchip Technology in the third quarter valued at $34,000. Truvestments Capital LLC acquired a new position in shares of Microchip Technology during the 3rd quarter worth $34,000. Pathway Financial Advisers LLC acquired a new stake in Microchip Technology in the 1st quarter valued at about $39,000. Finally, Versant Capital Management Inc increased its holdings in Microchip Technology by 148.8% during the 2nd quarter. Versant Capital Management Inc now owns 530 shares of the semiconductor company’s stock valued at $48,000 after acquiring an additional 317 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other 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.