SunTrust Banks Brokers Reduce Earnings Estimates for Microchip Technology Inc. (MCHP)

Microchip Technology Inc. (NASDAQ:MCHP) – Stock analysts at SunTrust Banks decreased their FY2020 EPS estimates for Microchip Technology in a report released on Wednesday, February 6th. SunTrust Banks analyst W. Stein now expects that the semiconductor company will post earnings per share of $6.44 for the year, down from their previous forecast of $7.11. SunTrust Banks also issued estimates for Microchip Technology’s FY2021 earnings at $7.21 EPS.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Tuesday, February 5th. The semiconductor company reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.45 by $0.21. The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.40 billion. Microchip Technology had a return on equity of 32.30% and a net margin of 6.53%. The company’s quarterly revenue was up 42.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.36 EPS.

Other research analysts also recently issued reports about the company. Morgan Stanley increased their target price on Microchip Technology from $72.00 to $75.00 and gave the company an “equal weight” rating in a research report on Wednesday, December 19th. BidaskClub upgraded Microchip Technology from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, January 30th. Needham & Company LLC lowered their price target on Microchip Technology to $100.00 and set a “strong-buy” rating for the company in a research report on Friday, October 26th. Zacks Investment Research upgraded Microchip Technology from a “sell” rating to a “hold” rating in a research report on Monday, December 10th. Finally, Piper Jaffray Companies set a $130.00 price target on Microchip Technology and gave the stock a “buy” rating in a research report on Thursday, November 8th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $103.95.

NASDAQ MCHP opened at $91.51 on Monday. The company has a quick ratio of 1.83, a current ratio of 2.92 and a debt-to-equity ratio of 2.04. The company has a market cap of $21.08 billion, a PE ratio of 17.63, a PEG ratio of 1.11 and a beta of 1.21. Microchip Technology has a one year low of $60.70 and a one year high of $104.20.

Hedge funds have recently added to or reduced their stakes in the business. Oregon Public Employees Retirement Fund increased its stake in Microchip Technology by 7,043.2% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,841,512 shares of the semiconductor company’s stock worth $26,000 after purchasing an additional 1,815,732 shares during the period. Morgan Dempsey Capital Management LLC purchased a new stake in Microchip Technology in the fourth quarter worth $28,000. Lindbrook Capital LLC purchased a new stake in Microchip Technology in the fourth quarter worth $32,000. Enlightenment Research LLC purchased a new stake in Microchip Technology in the fourth quarter worth $43,000. Finally, Doyle Wealth Management purchased a new stake in Microchip Technology in the fourth quarter worth $44,000.

In other Microchip Technology news, VP Stephen V. Drehobl sold 4,271 shares of the stock in a transaction on Friday, November 23rd. The stock was sold at an average price of $72.06, for a total value of $307,768.26. Following the sale, the vice president now owns 17,173 shares in the company, valued at $1,237,486.38. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 1,866 shares of the stock in a transaction on Friday, November 23rd. The stock was sold at an average price of $72.06, for a total value of $134,463.96. The disclosure for this sale can be found here. Company insiders own 2.13% of the company’s stock.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 7th. Shareholders of record on Thursday, February 21st will be paid a $0.365 dividend. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.36. The ex-dividend date is Wednesday, February 20th. This represents a $1.46 dividend on an annualized basis and a yield of 1.60%. Microchip Technology’s dividend payout ratio (DPR) is presently 28.13%.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.

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