Microchip Technology (NASDAQ:MCHP) Cut to Sell at StockNews.com

Microchip Technology (NASDAQ:MCHP) was downgraded by equities researchers at StockNews.com from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

Several other research firms have also issued reports on MCHP. JPMorgan Chase & Co. lowered their target price on shares of Microchip Technology from $110.00 to $100.00 and set an “overweight” rating on the stock in a research note on Friday, August 2nd. Citigroup cut their price objective on Microchip Technology from $104.00 to $92.00 and set a “buy” rating for the company in a research report on Friday, August 2nd. Needham & Company LLC dropped their price target on shares of Microchip Technology from $100.00 to $96.00 and set a “buy” rating on the stock in a research note on Monday, August 5th. Morgan Stanley cut shares of Microchip Technology from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from $102.00 to $100.00 in a research report on Thursday, July 11th. Finally, Truist Financial lowered shares of Microchip Technology from a “buy” rating to a “hold” rating and dropped their target price for the company from $89.00 to $80.00 in a research report on Monday. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $99.47.

Microchip Technology Stock Performance

Microchip Technology stock traded up $0.44 during midday trading on Tuesday, hitting $77.50. 4,434,239 shares of the company were exchanged, compared to its average volume of 6,046,228. The business has a fifty day simple moving average of $80.50 and a two-hundred day simple moving average of $87.55. 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 firm has a market capitalization of $41.58 billion, a PE ratio of 22.33 and a beta of 1.53. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $100.57.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.01. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same quarter last year, the company earned $1.56 EPS. The business’s revenue was down 45.8% on a year-over-year basis. On average, sell-side analysts forecast that Microchip Technology will post 1.74 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the sale, the chief financial officer now owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 2.07% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Rise Advisors LLC acquired a new position in shares of Microchip Technology in the 1st quarter valued at $28,000. Pineridge Advisors LLC acquired a new position in Microchip Technology in the fourth quarter valued at about $33,000. Steph & Co. boosted its stake in Microchip Technology by 57.4% during the first quarter. Steph & Co. now owns 414 shares of the semiconductor company’s stock worth $37,000 after buying an additional 151 shares during the period. Pathway Financial Advisers LLC acquired a new stake in shares of Microchip Technology during the first quarter valued at about $39,000. Finally, Richardson Capital Management LLC acquired a new stake in shares of Microchip Technology during the first quarter valued at about $45,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.