Microchip Technology (NASDAQ:MCHP) Hits New 1-Year Low – Here’s Why

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $49.51 and last traded at $49.62, with a volume of 637425 shares traded. The stock had previously closed at $50.79.

Wall Street Analyst Weigh In

Several equities analysts have commented on MCHP shares. KeyCorp dropped their target price on shares of Microchip Technology from $70.00 to $60.00 and set an “overweight” rating on the stock in a research report on Friday, February 7th. Rosenblatt Securities reiterated a “buy” rating and set a $70.00 price target on shares of Microchip Technology in a report on Tuesday, March 4th. Mizuho boosted their price objective on Microchip Technology from $58.00 to $68.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 4th. The Goldman Sachs Group decreased their target price on Microchip Technology from $72.00 to $63.00 and set a “neutral” rating for the company in a research report on Friday, January 10th. Finally, Needham & Company LLC boosted their price target on shares of Microchip Technology from $60.00 to $66.00 and gave the stock a “buy” rating in a report on Tuesday, March 4th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $74.37.

Microchip Technology Stock Performance

The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12. The company has a market capitalization of $26.75 billion, a PE ratio of 88.46 and a beta of 1.52. The company has a 50-day moving average price of $55.83 and a two-hundred day moving average price of $64.16.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. Analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Monday, February 24th were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 3.66%. The ex-dividend date of this dividend was Monday, February 24th. Microchip Technology’s dividend payout ratio is presently 325.00%.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,724 shares of the company’s stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total value of $226,717.12. Following the transaction, the chief financial officer now directly owns 33,272 shares in the company, valued at $2,025,599.36. This represents a 10.07 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of MCHP. United Bank grew its stake in Microchip Technology by 21.0% in the 3rd quarter. United Bank now owns 9,871 shares of the semiconductor company’s stock worth $793,000 after buying an additional 1,712 shares in the last quarter. Swedbank AB lifted its holdings in shares of Microchip Technology by 62.3% during the 3rd quarter. Swedbank AB now owns 34,885 shares of the semiconductor company’s stock worth $2,801,000 after acquiring an additional 13,392 shares during the last quarter. Larson Financial Group LLC grew its position in Microchip Technology by 55.9% in the third quarter. Larson Financial Group LLC now owns 2,938 shares of the semiconductor company’s stock worth $236,000 after acquiring an additional 1,053 shares in the last quarter. Loomis Sayles & Co. L P increased its stake in Microchip Technology by 65.8% in the third quarter. Loomis Sayles & Co. L P now owns 83,098 shares of the semiconductor company’s stock valued at $6,672,000 after acquiring an additional 32,967 shares during the last quarter. Finally, Truvestments Capital LLC purchased a new stake in Microchip Technology during the third quarter valued at about $34,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.