Microchip Technology (NASDAQ:MCHP) Shares Gap Down Following Analyst Downgrade

Posted by Defense World Staff on May 6th, 2023

Shares of Microchip Technology Incorporated (NASDAQ:MCHP – Get Rating) gapped down before the market opened on Friday after Susquehanna lowered their price target on the stock from $95.00 to $90.00. The stock had previously closed at $76.03, but opened at $71.00. Microchip Technology shares last traded at $73.83, with a volume of 1,490,411 shares changing hands.

Several other equities analysts have also commented on MCHP. Wells Fargo & Company increased their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the company an “equal weight” rating in a report on Friday, February 3rd. Credit Suisse Group increased their target price on shares of Microchip Technology from $85.00 to $98.00 and gave the company a “neutral” rating in a report on Friday, February 3rd. B. Riley increased their target price on shares of Microchip Technology from $86.00 to $106.00 and gave the company a “buy” rating in a report on Friday, February 3rd. Stifel Nicolaus cut their price target on shares of Microchip Technology from $100.00 to $95.00 in a report on Friday. Finally, Mizuho raised their price target on shares of Microchip Technology from $72.00 to $79.00 and gave the stock a “neutral” rating in a report on Friday, February 3rd. Six analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $89.85.

Institutional Investors Weigh In On Microchip Technology

Large investors have recently modified their holdings of the stock. Optimum Investment Advisors bought a new stake in shares of Microchip Technology during the 1st quarter valued at about $29,000. Quent Capital LLC purchased a new position in Microchip Technology during the 4th quarter valued at about $26,000. Live Oak Investment Partners purchased a new position in Microchip Technology during the 4th quarter valued at about $30,000. Almanack Investment Partners LLC. purchased a new position in Microchip Technology during the 3rd quarter valued at about $29,000. Finally, Accurate Wealth Management LLC purchased a new position in Microchip Technology during the 4th quarter valued at about $40,000. Institutional investors own 89.85% of the company’s stock.

Microchip Technology Stock Performance

The company has a market capitalization of $41.18 billion, a PE ratio of 20.37, a PEG ratio of 0.77 and a beta of 1.58. The business’s 50-day moving average is $79.66 and its 200-day moving average is $75.84. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.04 and a current ratio of 1.76.

Microchip Technology (NASDAQ:MCHP – Get Rating) last issued its quarterly earnings results on Thursday, February 2nd. The semiconductor company reported $1.48 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.48. Microchip Technology had a net margin of 25.73% and a return on equity of 50.01%. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.15 billion. On average, research analysts anticipate that Microchip Technology Incorporated will post 5.73 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 5th. Investors of record on Monday, May 22nd will be given a dividend of $0.383 per share. This is a boost from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.53 dividend on an annualized basis and a yield of 2.04%. Microchip Technology’s dividend payout ratio (DPR) is 38.75%.

About Microchip Technology

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Microchip Technology, Inc engages in the provision of semiconductor products. It operates through the Semiconductor Products and Technology Licensing segments. The Semiconductor Products segment is involved in designing, developing, manufacturing, and marketing microcontrollers, development tools and analog, interface, mixed signal, connectivity devices, and timing products.