Microchip Technology (NASDAQ:MCHP) Hits New 1-Year Low Following Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP)’s share price hit a new 52-week low during mid-day trading on Wednesday after KeyCorp lowered their price target on the stock from $95.00 to $90.00. KeyCorp currently has an overweight rating on the stock. Microchip Technology traded as low as $62.58 and last traded at $62.89, with a volume of 5761368 shares. The stock had previously closed at $65.39.

Several other analysts have also recently weighed in on MCHP. Susquehanna dropped their price target on Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a report on Wednesday, November 6th. Needham & Company LLC restated a “buy” rating and issued a $85.00 price target on shares of Microchip Technology in a research note on Tuesday. Evercore ISI reissued an “outperform” rating and set a $95.00 target price (down from $101.00) on shares of Microchip Technology in a report on Wednesday, November 6th. Piper Sandler cut their price objective on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a research report on Wednesday, November 6th. Finally, StockNews.com lowered shares of Microchip Technology from a “hold” rating to a “sell” rating in a report on Thursday, November 7th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $90.95.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of MCHP. Prospera Private Wealth LLC bought a new position in shares of Microchip Technology during the 3rd quarter worth approximately $29,000. Peterson Financial Group Inc. bought a new stake in Microchip Technology during the third quarter worth $34,000. Truvestments Capital LLC purchased a new position in Microchip Technology in the third quarter worth $34,000. Wolff Wiese Magana LLC grew its stake in Microchip Technology by 55.2% in the 3rd quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock valued at $49,000 after purchasing an additional 218 shares during the period. Finally, Hobbs Group Advisors LLC increased its position in shares of Microchip Technology by 390.6% during the 3rd quarter. Hobbs Group Advisors LLC now owns 628 shares of the semiconductor company’s stock valued at $50,000 after purchasing an additional 500 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Stock Down 5.5 %

The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.48 and a current ratio of 0.88. The company has a market capitalization of $31.28 billion, a P/E ratio of 40.73 and a beta of 1.50. The stock has a 50 day moving average price of $72.60 and a 200 day moving average price of $81.57.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, topping the consensus estimate 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 the consensus estimate of $1.15 billion. During the same quarter in the prior year, the company earned $1.54 EPS. The firm’s quarterly revenue was down 48.4% compared to the same quarter last year. Equities research analysts forecast that Microchip Technology Incorporated will post 1.33 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 22nd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.12%. The ex-dividend date of this dividend is Friday, November 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio is 127.27%.

Microchip Technology Company Profile

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.