Truist Financial Lowers Microchip Technology (NASDAQ:MCHP) to Hold

Microchip Technology (NASDAQ:MCHP) was downgraded by analysts at Truist Financial from a “buy” rating to a “hold” rating in a research note issued on Monday, Briefing.com reports. They currently have a $80.00 target price on the semiconductor company’s stock, down from their prior target price of $89.00. Truist Financial’s target price suggests a potential upside of 3.88% from the stock’s current price.

Other analysts also recently issued research reports about the stock. Susquehanna reduced their target price on shares of Microchip Technology from $115.00 to $105.00 and set a “positive” rating for the company in a report on Friday, August 2nd. Needham & Company LLC decreased their target price on Microchip Technology from $100.00 to $96.00 and set a “buy” rating on the stock in a research report on Monday, August 5th. Citigroup dropped their price target on Microchip Technology from $104.00 to $92.00 and set a “buy” rating for the company in a report on Friday, August 2nd. Piper Sandler raised Microchip Technology from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $90.00 to $100.00 in a report on Friday, August 16th. Finally, Morgan Stanley downgraded Microchip Technology from an “overweight” rating to an “equal weight” rating and dropped their target price for the stock from $102.00 to $100.00 in a report on Thursday, July 11th. Six analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $99.47.

Microchip Technology Stock Down 2.3 %

Shares of MCHP stock opened at $77.01 on Monday. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $100.57. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94. The stock has a market cap of $41.32 billion, a price-to-earnings ratio of 22.19 and a beta of 1.53. The firm’s 50-day moving average is $81.15 and its 200-day moving average is $87.74.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.01. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The business’s revenue for the quarter was down 45.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.56 earnings per share. Sell-side analysts predict that Microchip Technology will post 1.74 EPS for the current year.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the sale, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.07% of the company’s stock.

Institutional Trading of Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Swedbank AB acquired a new position in Microchip Technology in the 1st quarter worth about $1,079,000. Caxton Associates LP boosted its position in Microchip Technology by 4,511.5% during the 4th quarter. Caxton Associates LP now owns 400,000 shares of the semiconductor company’s stock worth $36,072,000 after buying an additional 391,326 shares during the period. SageView Advisory Group LLC boosted its position in Microchip Technology by 507.5% during the 1st quarter. SageView Advisory Group LLC now owns 17,307 shares of the semiconductor company’s stock worth $1,553,000 after buying an additional 14,458 shares during the period. RFG Advisory LLC grew its holdings in Microchip Technology by 228.4% during the 1st quarter. RFG Advisory LLC now owns 12,841 shares of the semiconductor company’s stock worth $1,152,000 after acquiring an additional 8,931 shares during the last quarter. Finally, Hennessy Advisors Inc. raised its stake in shares of Microchip Technology by 2,194.5% during the first quarter. Hennessy Advisors Inc. now owns 33,454 shares of the semiconductor company’s stock valued at $3,001,000 after acquiring an additional 31,996 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

About Microchip Technology

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.