Microchip Technology (NASDAQ:MCHP) Reaches New 12-Month Low – Here’s Why

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low on Friday . The stock traded as low as $54.81 and last traded at $54.98, with a volume of 493847 shares. The stock had previously closed at $56.38.

Analysts Set New Price Targets

A number of brokerages have recently commented on MCHP. Susquehanna dropped their target price on shares of Microchip Technology from $95.00 to $90.00 and set a “positive” rating on the stock in a report on Wednesday, November 6th. Evercore ISI reissued an “outperform” rating and set a $95.00 price objective (down previously from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. Bank of America downgraded Microchip Technology from a “neutral” rating to an “underperform” rating and cut their price target for the stock from $80.00 to $65.00 in a research note on Monday, December 16th. TD Cowen decreased their target price on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a report on Wednesday, November 6th. Finally, Mizuho set a $95.00 price objective on Microchip Technology in a research report on Friday, October 18th. One equities 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 MarketBeat, Microchip Technology has a consensus rating of “Moderate Buy” and a consensus price target of $89.63.

Microchip Technology Trading Down 2.4 %

The stock’s fifty day moving average price is $63.23 and its 200 day moving average price is $75.24. The stock has a market capitalization of $29.55 billion, a P/E ratio of 38.48 and a beta of 1.52. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. The business had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The company’s quarterly revenue was down 48.4% compared to the same quarter last year. During the same period last year, the company posted $1.54 earnings per share. Research analysts forecast that Microchip Technology Incorporated will post 1.33 earnings per share for the current year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 6th. Shareholders of record on Friday, November 22nd were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 3.31%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, November 22nd. Microchip Technology’s dividend payout ratio is currently 127.27%.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently bought and sold shares of MCHP. Watts Gwilliam & Co. LLC grew its stake in Microchip Technology by 250.5% in the fourth quarter. Watts Gwilliam & Co. LLC now owns 26,861 shares of the semiconductor company’s stock valued at $1,544,000 after purchasing an additional 19,198 shares during the last quarter. First Hawaiian Bank grew its position in shares of Microchip Technology by 2.4% in the 4th quarter. First Hawaiian Bank now owns 33,053 shares of the semiconductor company’s stock worth $1,896,000 after buying an additional 780 shares during the last quarter. InvesTrust bought a new position in shares of Microchip Technology during the 4th quarter worth approximately $638,000. Nordea Investment Management AB lifted its position in Microchip Technology by 4.9% during the fourth quarter. Nordea Investment Management AB now owns 42,255 shares of the semiconductor company’s stock valued at $2,435,000 after acquiring an additional 1,983 shares during the last quarter. Finally, Everence Capital Management Inc. grew its holdings in Microchip Technology by 111.7% in the fourth quarter. Everence Capital Management Inc. now owns 9,800 shares of the semiconductor company’s stock worth $562,000 after purchasing an additional 5,170 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.