Zacks Investment Research upgraded shares of Microchip Technology Incorporated (NASDAQ:MCHP) from a hold rating to a buy rating in a research report sent to investors on Friday morning. The brokerage currently has $102.00 price target on the semiconductor company’s stock.
According to Zacks, “Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. This was evident from the second-quarter fiscal 2018. Both earnings and revenues increased on a year-over-year basis. For the first time in its history, the company hit the $1 billion revenue milestone. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. The stock has outperformed the industry on a year-to-date basis. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. Additionally, increasing capital expenditure is expected to save cost in the long haul.”
Several other brokerages also recently issued reports on MCHP. J P Morgan Chase & Co reiterated an overweight rating and set a $120.00 price objective on shares of Microchip Technology in a research report on Tuesday, November 7th. Needham & Company LLC boosted their price objective on Microchip Technology from $120.00 to $130.00 and gave the stock a strong-buy rating in a research report on Tuesday, November 7th. Stifel Nicolaus restated a buy rating and issued a $100.00 target price (up from $94.00) on shares of Microchip Technology in a research report on Tuesday, November 7th. B. Riley restated a buy rating and issued a $123.00 target price (up from $120.00) on shares of Microchip Technology in a research report on Tuesday, November 7th. Finally, Jefferies Group LLC upped their target price on Microchip Technology from $106.00 to $110.00 and gave the stock a buy rating in a research report on Tuesday, November 7th. Five investment analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Microchip Technology currently has a consensus rating of Buy and an average price target of $99.41.
Microchip Technology (NASDAQ MCHP) traded up $0.75 during trading hours on Friday, hitting $91.56. The stock had a trading volume of 1,827,100 shares, compared to its average volume of 2,562,826. The company has a market capitalization of $21,416.38, a price-to-earnings ratio of 19.40, a PEG ratio of 1.46 and a beta of 1.05. Microchip Technology has a 52 week low of $60.77 and a 52 week high of $95.92. The company has a debt-to-equity ratio of 0.85, a current ratio of 3.33 and a quick ratio of 2.71.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Monday, November 6th. The semiconductor company reported $1.41 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.27 by $0.14. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1 billion. Microchip Technology had a return on equity of 35.48% and a net margin of 16.23%. The business’s revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.94 earnings per share. sell-side analysts forecast that Microchip Technology will post 5.12 EPS for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 5th. Stockholders of record on Tuesday, November 21st will be given a dividend of $0.3625 per share. This represents a $1.45 dividend on an annualized basis and a dividend yield of 1.58%. The ex-dividend date is Monday, November 20th. This is an increase from Microchip Technology’s previous quarterly dividend of $0.36. Microchip Technology’s dividend payout ratio is 58.00%.
In other Microchip Technology news, VP Stephen V. Drehobl sold 3,076 shares of the business’s stock in a transaction on Tuesday, August 22nd. The shares were sold at an average price of $81.89, for a total transaction of $251,893.64. Following the sale, the vice president now directly owns 14,263 shares of the company’s stock, valued at approximately $1,167,997.07. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Wade F. Meyercord sold 1,300 shares of the business’s stock in a transaction on Tuesday, August 15th. The shares were sold at an average price of $83.95, for a total transaction of $109,135.00. The disclosure for this sale can be found here. Insiders have sold a total of 6,829 shares of company stock valued at $561,905 in the last quarter. Insiders own 2.13% of the company’s stock.
Large investors have recently made changes to their positions in the business. Principal Financial Group Inc. raised its stake in Microchip Technology by 66.5% during the 2nd quarter. Principal Financial Group Inc. now owns 6,276,677 shares of the semiconductor company’s stock valued at $484,434,000 after purchasing an additional 2,507,707 shares during the period. Fox Run Management L.L.C. raised its stake in Microchip Technology by 248.8% during the 3rd quarter. Fox Run Management L.L.C. now owns 15,000 shares of the semiconductor company’s stock valued at $1,347,000 after purchasing an additional 10,700 shares during the period. Nicolet Bankshares Inc. raised its stake in Microchip Technology by 0.3% during the 2nd quarter. Nicolet Bankshares Inc. now owns 3,641 shares of the semiconductor company’s stock valued at $281,000 after purchasing an additional 11 shares during the period. 361 Capital LLC raised its stake in Microchip Technology by 35.3% during the 2nd quarter. 361 Capital LLC now owns 48,830 shares of the semiconductor company’s stock valued at $3,769,000 after purchasing an additional 12,730 shares during the period. Finally, Norinchukin Bank The increased its stake in shares of Microchip Technology by 13.2% in the second quarter. Norinchukin Bank The now owns 15,920 shares of the semiconductor company’s stock worth $1,229,000 after acquiring an additional 1,857 shares during the last quarter.
About Microchip Technology
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.
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