Microchip Technology (NASDAQ:MCHP) Trading 7.4% Higher – Here’s Why

by · The Cerbat Gem

Microchip Technology Incorporated (NASDAQ:MCHP – Get Free Report)’s share price was up 7.4% during trading on Wednesday . The stock traded as high as $61.97 and last traded at $62.15. Approximately 6,293,783 shares changed hands during trading, a decline of 29% from the average daily volume of 8,885,386 shares. The stock had previously closed at $57.86.

Analyst Upgrades and Downgrades

Several analysts recently commented on MCHP shares. TD Cowen dropped their price objective on Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research note on Wednesday, November 6th. Bank of America downgraded Microchip Technology from a “neutral” rating to an “underperform” rating and dropped their price objective for the stock from $80.00 to $65.00 in a research note on Monday, December 16th. Rosenblatt Securities reaffirmed a “buy” rating and set a $90.00 price objective on shares of Microchip Technology in a research note on Thursday, February 6th. Stifel Nicolaus dropped their price objective on Microchip Technology from $90.00 to $87.00 and set a “buy” rating on the stock in a research note on Tuesday, December 3rd. Finally, StockNews.com downgraded Microchip Technology from a “hold” rating to a “sell” rating in a research note on Monday, February 10th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $77.11.

Check Out Our Latest Stock Analysis on MCHP

Microchip Technology Price Performance

The company has a market cap of $32.84 billion, a P/E ratio of 109.05 and a beta of 1.50. The company has a fifty day moving average price of $56.68 and a two-hundred day moving average price of $68.16. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25.

Microchip Technology (NASDAQ:MCHP – Get Free Report) last announced its quarterly earnings data on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. On average, sell-side analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Stockholders of record on Monday, February 24th will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.98%. The ex-dividend date of this dividend is Monday, February 24th. Microchip Technology’s payout ratio is 325.00%.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Mainstream Capital Management LLC bought a new position in Microchip Technology during the fourth quarter worth about $26,000. Rakuten Securities Inc. grew its holdings in Microchip Technology by 309.5% during the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 359 shares during the period. Prospera Private Wealth LLC bought a new position in Microchip Technology during the third quarter worth about $29,000. OFI Invest Asset Management bought a new position in Microchip Technology during the fourth quarter worth about $29,000. Finally, Financial Life Planners bought a new position in Microchip Technology during the fourth quarter worth about $32,000. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

(Get Free Report)

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.

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