Zacks Investment Research upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a report published on Tuesday morning. They currently have $98.00 price objective on the semiconductor company’s stock.
According to Zacks, “Shares of Microchip have outperformed the industry over the past one year. The company plans to bring in-house more of the assembly and test operations that are currently outsourced, which will ultimately improve gross margin. The heightened capital expenditures also reflect three new buildings that Microchip is constructing in Arizona, India and Germany. These, in turn, will help in reducing cost in the long-haul. 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. Additionally, the company expanded collaboration with Amazon Web services to support AWS offerings as well as develop secure cloud system. However, given its extensive geographical foothold the company is continuously adversely impacted by exchange rate volatility while competitionremains headwind.”
Several other brokerages also recently weighed in on MCHP. Stifel Nicolaus reaffirmed an average rating and set a $112.00 target price on shares of Microchip Technology in a research note on Tuesday, March 6th. Goldman Sachs raised shares of Microchip Technology from a neutral rating to a buy rating and upped their target price for the stock from $95.57 to $108.00 in a research note on Thursday, March 8th. Rosenblatt Securities reaffirmed a buy rating on shares of Microchip Technology in a research note on Tuesday, March 6th. BidaskClub downgraded shares of Microchip Technology from a strong-buy rating to a buy rating in a research note on Friday, January 26th. Finally, Mizuho raised shares of Microchip Technology from a neutral rating to a buy rating and upped their target price for the stock from $92.00 to $110.00 in a research note on Monday, March 5th. Four equities research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. Microchip Technology presently has a consensus rating of Buy and an average price target of $103.99.
Microchip Technology stock opened at $86.27 on Tuesday. The company has a market capitalization of $21,001.83, a PE ratio of 23.70, a P/E/G ratio of 1.11 and a beta of 1.06. Microchip Technology has a 1 year low of $71.40 and a 1 year high of $101.48. The company has a current ratio of 2.98, a quick ratio of 2.33 and a debt-to-equity ratio of 0.95.
Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Tuesday, February 6th. The semiconductor company reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.01. The business had revenue of $994.10 million for the quarter, compared to the consensus estimate of $992.10 million. Microchip Technology had a net margin of 6.33% and a return on equity of 36.54%. The business’s revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.05 EPS. research analysts forecast that Microchip Technology will post 5.13 EPS for the current year.
In other Microchip Technology news, VP Mitchell R. Little sold 4,159 shares of the business’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $84.14, for a total transaction of $349,938.26. Following the completion of the transaction, the vice president now owns 15,767 shares in the company, valued at approximately $1,326,635.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Esther Johnson sold 2,275 shares of the business’s stock in a transaction that occurred on Wednesday, March 14th. The stock was sold at an average price of $97.90, for a total transaction of $222,722.50. Following the transaction, the director now owns 6,081 shares of the company’s stock, valued at approximately $595,329.90. The disclosure for this sale can be found here. Insiders have sold a total of 33,667 shares of company stock valued at $3,132,552 in the last quarter. 2.13% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. New York State Common Retirement Fund grew its holdings in Microchip Technology by 2.0% during the 3rd quarter. New York State Common Retirement Fund now owns 526,914 shares of the semiconductor company’s stock worth $47,306,000 after acquiring an additional 10,156 shares in the last quarter. KBC Group NV grew its holdings in Microchip Technology by 5.4% during the 3rd quarter. KBC Group NV now owns 31,163 shares of the semiconductor company’s stock worth $2,798,000 after acquiring an additional 1,603 shares in the last quarter. Commerzbank Aktiengesellschaft FI grew its holdings in Microchip Technology by 48.0% during the 3rd quarter. Commerzbank Aktiengesellschaft FI now owns 20,754 shares of the semiconductor company’s stock worth $1,863,000 after acquiring an additional 6,734 shares in the last quarter. Westfield Capital Management Co. LP grew its holdings in Microchip Technology by 292.2% during the 3rd quarter. Westfield Capital Management Co. LP now owns 221,975 shares of the semiconductor company’s stock worth $19,929,000 after acquiring an additional 165,380 shares in the last quarter. Finally, Pinebridge Investments L.P. acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $783,000.
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About Microchip Technology
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.
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