Microchip Technology (NASDAQ:MCHP) Hits New 1-Year Low – What’s Next?

Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $62.60 and last traded at $62.60, with a volume of 8229 shares trading hands. The stock had previously closed at $62.86.

Wall Street Analysts Forecast Growth

MCHP has been the subject of several recent analyst reports. KeyCorp decreased their price objective on shares of Microchip Technology from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Wednesday, November 6th. Bank of America cut shares of Microchip Technology from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $110.00 to $90.00 in a research report on Friday, August 2nd. Truist Financial cut shares of Microchip Technology from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $89.00 to $80.00 in a research report on Monday, September 23rd. StockNews.com cut shares of Microchip Technology from a “hold” rating to a “sell” rating in a research report on Thursday, November 7th. Finally, Jefferies Financial Group decreased their price objective on shares of Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $92.00.

Microchip Technology Price Performance

The stock has a market capitalization of $34.84 billion, a P/E ratio of 45.37 and a beta of 1.53. The business’s 50 day simple moving average is $75.24 and its two-hundred day simple moving average is $83.67. The company has a quick ratio of 0.48, a current ratio of 0.88 and a debt-to-equity ratio of 0.71.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The firm had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same period last year, the firm earned $1.54 earnings per share. The business’s quarterly revenue was down 48.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Microchip Technology Incorporated will post 1.38 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 22nd will be given a dividend of $0.455 per share. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.81%. The ex-dividend date of this dividend is Friday, November 22nd. Microchip Technology’s dividend payout ratio (DPR) is presently 127.27%.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,154 shares of the firm’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the transaction, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at $2,710,445.50. This trade represents a 6.08 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.10% of the stock is owned by insiders.

Institutional Trading of Microchip Technology

Several hedge funds have recently added to or reduced their stakes in the stock. TD Private Client Wealth LLC raised its position in Microchip Technology by 5.6% in the third quarter. TD Private Client Wealth LLC now owns 33,175 shares of the semiconductor company’s stock worth $2,664,000 after acquiring an additional 1,760 shares during the period. Hobbs Group Advisors LLC raised its position in Microchip Technology by 390.6% in the third quarter. Hobbs Group Advisors LLC now owns 628 shares of the semiconductor company’s stock worth $50,000 after acquiring an additional 500 shares during the period. Coldstream Capital Management Inc. raised its position in Microchip Technology by 2.4% in the third quarter. Coldstream Capital Management Inc. now owns 11,052 shares of the semiconductor company’s stock worth $878,000 after acquiring an additional 260 shares during the period. Disciplined Growth Investors Inc. MN raised its position in Microchip Technology by 4.6% in the third quarter. Disciplined Growth Investors Inc. MN now owns 1,819,855 shares of the semiconductor company’s stock worth $146,116,000 after acquiring an additional 79,473 shares during the period. Finally, MML Investors Services LLC raised its position in Microchip Technology by 1.7% in the third quarter. MML Investors Services LLC now owns 253,476 shares of the semiconductor company’s stock worth $20,352,000 after acquiring an additional 4,203 shares during the period. Institutional investors own 91.51% of the company’s stock.

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.