Microchip Technology (NASDAQ:MCHP) Trading Down 7% – Here’s Why

by · The Cerbat Gem

Shares of Microchip Technology Incorporated (NASDAQ:MCHP – Get Free Report) were down 7% during trading on Friday . The company traded as low as $87.67 and last traded at $87.4860. 3,080,253 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 10,147,101 shares. The stock had previously closed at $94.12.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Rosenblatt Securities raised their target price on shares of Microchip Technology from $115.00 to $120.00 and gave the company a “buy” rating in a report on Friday, May 8th. Barclays upped their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. UBS Group reissued a “buy” rating on shares of Microchip Technology in a research note on Tuesday, June 2nd. Citigroup boosted their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Finally, Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, June 4th. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $98.18.

View Our Latest Research Report on MCHP

Microchip Technology Stock Down 6.9%

The firm’s fifty day moving average is $92.74 and its 200-day moving average is $78.30. The company has a market capitalization of $47.48 billion, a P/E ratio of 417.35, a price-to-earnings-growth ratio of 0.95 and a beta of 1.73. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09.

Microchip Technology (NASDAQ:MCHP – Get Free Report) last issued its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the business posted $0.11 earnings per share. The company’s quarterly revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts predict that Microchip Technology Incorporated will post 2.66 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were given a $0.455 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 2.1%. Microchip Technology’s dividend payout ratio (DPR) is currently 866.67%.

Insider Transactions at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the sale, the chief executive officer directly owned 9,385,834 shares in the company, valued at approximately $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James Eric Bjornholt sold 3,667 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at $2,596,428.51. This represents a 11.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 553,302 shares of company stock valued at $49,673,635. Company insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Hedge funds have recently modified their holdings of the business. Norges Bank acquired a new stake in Microchip Technology in the fourth quarter valued at $664,564,000. Barclays PLC lifted its holdings in Microchip Technology by 66.5% during the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock worth $891,881,000 after buying an additional 5,590,210 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in Microchip Technology by 25.7% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock worth $709,506,000 after buying an additional 2,257,932 shares during the period. Holocene Advisors LP grew its position in shares of Microchip Technology by 77.0% in the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company’s stock valued at $302,447,000 after buying an additional 2,049,249 shares during the last quarter. Finally, Rafferty Asset Management LLC grew its position in shares of Microchip Technology by 41.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company’s stock valued at $436,559,000 after buying an additional 1,803,945 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Company Profile

(Get Free Report)

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.

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