Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, January 3rd.
According to Zacks, “Microchip develops and manufacturers microcontrollers, memory and analog and interface products for embedded control systems. Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. However, increasing lead time due to manufacturing constraints can impact gross margins. Additionally, given its extensive geographical foothold the company is continuously adversely impacted by exchange rate volatility while competition remains headwind.”
A number of other equities analysts have also recently issued reports on MCHP. Needham & Company LLC reiterated a “buy” rating and issued a $120.00 target price on shares of Microchip Technology in a report on Friday, September 8th. Morgan Stanley reiterated an “overweight” rating and issued a $94.00 target price on shares of Microchip Technology in a report on Wednesday, September 20th. Stifel Nicolaus reiterated a “buy” rating and issued a $94.00 target price on shares of Microchip Technology in a report on Thursday, September 28th. ValuEngine cut Microchip Technology from a “buy” rating to a “hold” rating in a report on Saturday, September 30th. Finally, Argus initiated coverage on Microchip Technology in a report on Friday, October 6th. They issued a “buy” rating and a $106.00 target price on the stock. Six analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. Microchip Technology presently has an average rating of “Buy” and an average target price of $101.24.
Microchip Technology (MCHP) opened at $97.45 on Wednesday. The stock has a market capitalization of $22,756.66, a P/E ratio of 20.61, a price-to-earnings-growth ratio of 1.28 and a beta of 1.00. Microchip Technology has a twelve month low of $65.60 and a twelve month high of $98.14. The company has a current ratio of 3.33, a quick ratio of 2.71 and a debt-to-equity ratio of 0.85.
Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Monday, November 6th. The semiconductor company reported $1.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.27 by $0.14. Microchip Technology had a return on equity of 35.48% and a net margin of 16.23%. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1 billion. During the same period in the prior year, the business earned $0.94 EPS. The company’s revenue for the quarter was up 16.2% compared to the same quarter last year. sell-side analysts anticipate that Microchip Technology will post 5.12 earnings per share for the current fiscal year.
In other news, CFO James Eric Bjornholt sold 1,801 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total transaction of $165,079.66. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Stephen V. Drehobl sold 2,852 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $91.66, for a total value of $261,414.32. Following the sale, the vice president now directly owns 15,767 shares of the company’s stock, valued at $1,445,203.22. The disclosure for this sale can be found here. Company insiders own 2.13% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in MCHP. Janus Henderson Group PLC increased its holdings in Microchip Technology by 2,959.9% in the 2nd quarter. Janus Henderson Group PLC now owns 8,073,264 shares of the semiconductor company’s stock worth $623,093,000 after acquiring an additional 7,809,422 shares during the last quarter. Fred Alger Management Inc. increased its holdings in Microchip Technology by 80.9% in the 2nd quarter. Fred Alger Management Inc. now owns 3,349,037 shares of the semiconductor company’s stock worth $258,479,000 after acquiring an additional 1,497,699 shares during the last quarter. Vanguard Group Inc. increased its holdings in Microchip Technology by 4.6% in the 2nd quarter. Vanguard Group Inc. now owns 23,622,558 shares of the semiconductor company’s stock worth $1,823,190,000 after acquiring an additional 1,042,622 shares during the last quarter. Ameriprise Financial Inc. increased its holdings in Microchip Technology by 75.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,403,141 shares of the semiconductor company’s stock worth $185,475,000 after acquiring an additional 1,033,992 shares during the last quarter. Finally, Atlantic Trust Group LLC increased its holdings in Microchip Technology by 255.3% in the 3rd quarter. Atlantic Trust Group LLC now owns 1,381,312 shares of the semiconductor company’s stock worth $124,014,000 after acquiring an additional 992,572 shares during the last quarter.
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About Microchip Technology
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.
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