Microchip Technology (NASDAQ:MCHP) Trading Down 3.9% on Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHPGet Free Report)’s share price traded down 3.9% on Friday after B. Riley lowered their price target on the stock from $93.00 to $85.00. B. Riley currently has a buy rating on the stock. Microchip Technology traded as low as $57.01 and last traded at $57.26. 875,467 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 7,023,287 shares. The stock had previously closed at $59.57.

A number of other brokerages have also recently commented on MCHP. Stifel Nicolaus dropped their target price on Microchip Technology from $90.00 to $87.00 and set a “buy” rating for the company in a report on Tuesday, December 3rd. Jefferies Financial Group dropped their price objective on shares of Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. The Goldman Sachs Group cut their price objective on shares of Microchip Technology from $72.00 to $63.00 and set a “neutral” rating on the stock in a research report on Friday, January 10th. Rosenblatt Securities restated a “buy” rating and issued a $90.00 target price on shares of Microchip Technology in a report on Wednesday, November 6th. Finally, Evercore ISI reiterated an “outperform” rating and set a $95.00 price target (down from $101.00) on shares of Microchip Technology in a report on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $84.00.

Get Our Latest Stock Report on Microchip Technology

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. Financial Life Planners bought a new position in shares of Microchip Technology during the 4th quarter worth $32,000. Stock Yards Bank & Trust Co. grew its holdings in Microchip Technology by 14.0% during the 4th quarter. Stock Yards Bank & Trust Co. now owns 13,124 shares of the semiconductor company’s stock worth $753,000 after acquiring an additional 1,607 shares in the last quarter. Spire Wealth Management grew its holdings in Microchip Technology by 18.5% during the 4th quarter. Spire Wealth Management now owns 3,340 shares of the semiconductor company’s stock worth $192,000 after acquiring an additional 521 shares in the last quarter. DAVENPORT & Co LLC increased its position in Microchip Technology by 6.4% during the 4th quarter. DAVENPORT & Co LLC now owns 93,382 shares of the semiconductor company’s stock valued at $5,355,000 after purchasing an additional 5,610 shares during the period. Finally, Symphony Financial Ltd. Co. bought a new stake in shares of Microchip Technology in the 4th quarter valued at about $520,000. 91.51% of the stock is owned by institutional investors.

Microchip Technology Price Performance

The company has a current ratio of 0.88, a quick ratio of 0.48 and a debt-to-equity ratio of 0.71. The firm’s 50-day moving average price is $60.41 and its two-hundred day moving average price is $72.89. The stock has a market cap of $30.28 billion, a PE ratio of 39.43 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHPGet Free Report) last posted its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The company had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the prior year, the business earned $1.54 earnings per share. Microchip Technology’s revenue was down 48.4% on a year-over-year basis. On average, equities analysts expect that Microchip Technology Incorporated will post 1.31 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 6th. Shareholders of record on Friday, November 22nd were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 3.23%. The ex-dividend date was Friday, November 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s payout ratio is 127.27%.

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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