Microchip Technology Incorporated (NASDAQ:MCHP) Receives $74.42 Average Target Price from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has earned an average recommendation of “Moderate Buy” from the nineteen research firms that are currently covering the company, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $76.5789.

Several analysts recently commented on MCHP shares. Evercore ISI raised their price objective on Microchip Technology from $69.00 to $83.00 and gave the stock an “outperform” rating in a research note on Thursday, June 12th. Piper Sandler raised their price objective on Microchip Technology from $65.00 to $80.00 and gave the stock an “overweight” rating in a research note on Friday. Raymond James Financial raised their price objective on Microchip Technology from $65.00 to $75.00 and gave the stock a “strong-buy” rating in a research note on Friday. Stifel Nicolaus raised their price objective on Microchip Technology from $70.00 to $82.00 and gave the stock a “buy” rating in a research note on Friday, July 18th. Finally, Truist Financial lifted their price target on Microchip Technology from $52.00 to $64.00 and gave the company a “hold” rating in a research note on Wednesday, June 18th.

Insider Activity

In other news, Director Karlton D. Johnson sold 494 shares of the firm’s stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total value of $29,980.86. Following the completion of the transaction, the director owned 3,468 shares in the company, valued at $210,472.92. This trade represents a 12.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm’s stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total value of $112,396.70. Following the completion of the transaction, the chief financial officer owned 34,313 shares of the company’s stock, valued at $1,913,979.14. The trade was a 5.55% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Orbis Allan Gray Ltd bought a new position in Microchip Technology during the first quarter worth about $369,612,000. Invesco Ltd. grew its holdings in Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company’s stock worth $808,787,000 after purchasing an additional 6,459,123 shares during the period. Goldman Sachs Group Inc. grew its holdings in Microchip Technology by 138.9% during the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company’s stock worth $427,681,000 after purchasing an additional 5,136,154 shares during the period. Boston Partners grew its holdings in Microchip Technology by 38.0% during the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock worth $1,040,114,000 after purchasing an additional 4,076,112 shares during the period. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its holdings in Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company’s stock worth $306,541,000 after purchasing an additional 3,912,895 shares during the period. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $60.95 on Thursday. The company has a market capitalization of $32.89 billion, a PE ratio of -179.26, a PEG ratio of 1.79 and a beta of 1.55. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $82.87. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The stock’s fifty day simple moving average is $69.67 and its 200 day simple moving average is $58.12.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%. The firm’s revenue was down 13.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.53 EPS. On average, research analysts predict that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be issued a $0.455 dividend. The ex-dividend date is Friday, August 22nd. This represents a $1.82 annualized dividend and a dividend yield of 3.0%. Microchip Technology’s dividend payout ratio (DPR) is presently -535.29%.

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.