Microchip Technology (NASDAQ:MCHP) Shares Gap Down Following Analyst Downgrade
Microchip Technology (NASDAQ:MCHP) shares gapped down after TD Cowen downgraded the stock's price target from $75 to $60. The stock opened at $61.58, down from a previous close of $66.22, and last traded at $62.76. Analysts have mixed ratings, with six holding, thirteen buying, and one strong buy. Institutional investors own 91.51% of the stock, and recent trading activity includes significant purchases by hedge funds. The company has a market cap of $34.25 billion and reported earnings of $0.27 per share in its last quarter.
Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) gapped down before the market opened on Friday after TD Cowen lowered their price target on the stock from $75.00 to $60.00. The stock had previously closed at $66.22, but opened at $61.58. TD Cowen currently has a hold rating on the stock. Microchip Technology shares last traded at $62.76, with a volume of 5,277,331 shares trading hands.
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MCHP has been the topic of several other reports. Raymond James Financial boosted their target price on shares of Microchip Technology from $60.00 to $65.00 and gave the company a "strong-buy" rating in a report on Friday, May 9th. Needham & Company LLC reiterated a "buy" rating and issued a $66.00 target price on shares of Microchip Technology in a report on Friday, May 9th. Morgan Stanley boosted their target price on shares of Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a report on Friday, May 9th. Evercore ISI boosted their target price on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a report on Thursday, June 12th. Finally, B. Riley upped their price objective on shares of Microchip Technology from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Six investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average target price of $76.05.
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Insiders Place Their Bets
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In related news, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer owned 34,313 shares in the company, valued at $1,913,979.14. This represents a 5.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Karlton D. Johnson sold 494 shares of the stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This represents a 12.47% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by corporate insiders.
Institutional Trading of Microchip Technology
Several hedge funds have recently made changes to their positions in MCHP. Orbis Allan Gray Ltd acquired a new stake in shares of Microchip Technology in the 1st quarter worth $369,612,000. Invesco Ltd. increased its holdings in shares of Microchip Technology by 63.0% in the 1st quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock valued at $808,787,000 after purchasing an additional 6,459,123 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Microchip Technology by 138.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after purchasing an additional 5,136,154 shares in the last quarter. Boston Partners increased its holdings in shares of Microchip Technology by 38.0% in the 2nd quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company's stock valued at $1,040,114,000 after purchasing an additional 4,076,112 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC increased its holdings in shares of Microchip Technology by 273.2% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock valued at $306,541,000 after purchasing an additional 3,912,895 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.
Microchip Technology Price Performance
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The stock's fifty day moving average price is $69.39 and its 200-day moving average price is $58.02. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.47 and a current ratio of 2.59. The firm has a market cap of $34.25 billion, a PE ratio of -6,352.30, a P/E/G ratio of 1.91 and a beta of 1.55.
Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 0.01% and a positive return on equity of 8.55%. The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period last year, the firm posted $0.53 EPS. The firm's revenue for the quarter was down 13.3% on a year-over-year basis. As a group, equities analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.
Microchip Technology Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.9%. Microchip Technology's dividend payout ratio (DPR) is presently -18,200.00%.
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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