Microchip Technology (NASDAQ:MCHP) Downgraded by StockNews.com to “Sell”

StockNews.com lowered shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a sell rating in a report issued on Thursday.

Other equities analysts also recently issued research reports about the company. Citigroup decreased their target price on Microchip Technology from $92.00 to $82.00 and set a “buy” rating on the stock in a research report on Wednesday. Needham & Company LLC decreased their target price on Microchip Technology from $96.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday. KeyCorp decreased their target price on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating on the stock in a research report on Wednesday. Evercore ISI reaffirmed an “outperform” rating and issued a $95.00 price target (down previously from $101.00) on shares of Microchip Technology in a report on Wednesday. Finally, B. Riley cut their price target on Microchip Technology from $110.00 to $103.00 and set a “buy” rating for the company in a report on Friday, August 2nd. One research analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $92.00.

Microchip Technology Price Performance

MCHP stock traded down $1.74 during mid-day trading on Thursday, reaching $72.60. 3,127,747 shares of the company’s stock were exchanged, compared to its average volume of 5,953,220. The company has a market cap of $38.95 billion, a price-to-earnings ratio of 51.99 and a beta of 1.53. The stock’s 50 day moving average is $77.05 and its 200 day moving average is $85.12. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.94 and a quick ratio of 1.08. Microchip Technology has a 12-month low of $71.76 and a 12-month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. The company had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.15 billion. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. Microchip Technology’s revenue for the quarter was down 48.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.54 earnings per share. On average, research analysts expect that Microchip Technology will post 1.73 EPS for the current year.

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be paid a $0.455 dividend. The ex-dividend date is Friday, November 22nd. This is a boost 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 2.51%. Microchip Technology’s payout ratio is presently 126.57%.

Insider Activity

In other news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the sale, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Pinnacle Associates Ltd. boosted its holdings in Microchip Technology by 50.0% in the third quarter. Pinnacle Associates Ltd. now owns 105,694 shares of the semiconductor company’s stock valued at $8,486,000 after purchasing an additional 35,213 shares during the period. Swedbank AB purchased a new position in Microchip Technology in the first quarter valued at $1,079,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in Microchip Technology by 12.0% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 870,072 shares of the semiconductor company’s stock worth $69,355,000 after buying an additional 93,464 shares during the last quarter. SageView Advisory Group LLC lifted its holdings in Microchip Technology by 507.5% during the 1st quarter. SageView Advisory Group LLC now owns 17,307 shares of the semiconductor company’s stock worth $1,553,000 after buying an additional 14,458 shares during the last quarter. Finally, Zurich Insurance Group Ltd FI purchased a new stake in Microchip Technology during the 2nd quarter worth about $42,538,000. 91.51% of the stock is currently 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.