Microchip Technology (NASDAQ:MCHP) Cut to Sell at Wall Street Zen

Wall Street Zen cut shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a sell rating in a research report report published on Saturday.

Several other research firms have also commented on MCHP. Morgan Stanley raised their price objective on Microchip Technology from $39.00 to $50.00 and gave the company an “equal weight” rating in a research report on Friday, May 9th. Piper Sandler restated an “overweight” rating and issued a $65.00 target price (down from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Truist Financial lifted their price target on Microchip Technology from $43.00 to $52.00 and gave the company a “hold” rating in a report on Friday, May 9th. Stifel Nicolaus lifted their price target on Microchip Technology from $60.00 to $70.00 and gave the company a “buy” rating in a report on Friday, May 9th. Finally, Raymond James boosted their target price on Microchip Technology from $60.00 to $65.00 and gave the stock a “strong-buy” rating in a report on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $68.37.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $68.05 on Friday. Microchip Technology has a one year low of $34.13 and a one year high of $96.98. The stock has a market cap of $36.71 billion, a PE ratio of 121.52 and a beta of 1.48. The business’s fifty day moving average price is $50.33 and its two-hundred day moving average price is $54.82. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.01. The company had revenue of $970.50 million for the quarter, compared to analyst estimates of $962.86 million. Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. The business’s revenue for the quarter was down 26.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.57 EPS. On average, analysts forecast that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.67%. The ex-dividend date was Thursday, May 22nd. Microchip Technology’s dividend payout ratio is currently -18,200.00%.

Insider Buying and Selling

In other news, Director Karlton D. Johnson sold 494 shares of the firm’s stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director now owns 3,468 shares of the company’s stock, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer now owns 34,313 shares in the company, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank bought a new stake in shares of Microchip Technology in the fourth quarter worth $452,627,000. Orbis Allan Gray Ltd bought a new stake in shares of Microchip Technology in the first quarter worth $369,612,000. Invesco Ltd. grew its stake in shares of Microchip Technology by 63.0% in the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company’s stock worth $808,787,000 after purchasing an additional 6,459,123 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Microchip Technology by 138.9% in the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company’s stock worth $427,681,000 after purchasing an additional 5,136,154 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its stake in shares of Microchip Technology by 273.2% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company’s stock worth $306,541,000 after purchasing an additional 3,912,895 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.