Microchip Technology (NASDAQ:MCHP) Trading Down 2.1%

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price dropped 2.1% on Thursday . The company traded as low as $93.97 and last traded at $93.98. Approximately 356,734 shares were traded during trading, a decline of 94% from the average daily volume of 5,680,279 shares. The stock had previously closed at $95.98.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on MCHP shares. UBS Group boosted their target price on Microchip Technology from $95.00 to $103.00 and gave the company a “buy” rating in a research report on Tuesday, May 7th. Citigroup boosted their price objective on Microchip Technology from $100.00 to $104.00 and gave the company a “buy” rating in a report on Tuesday, May 7th. Susquehanna raised their target price on Microchip Technology from $100.00 to $105.00 and gave the company a “positive” rating in a report on Tuesday, May 7th. Truist Financial boosted their price target on shares of Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research note on Tuesday, May 7th. Finally, Mizuho raised shares of Microchip Technology from a “neutral” rating to a “buy” rating and raised their price objective for the company from $85.00 to $115.00 in a research note on Friday, May 24th. Six equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat.com, Microchip Technology currently has an average rating of “Moderate Buy” and an average price target of $101.61.

Microchip Technology Price Performance

The firm has a market capitalization of $49.95 billion, a PE ratio of 26.91 and a beta of 1.54. The company has a current ratio of 1.20, a quick ratio of 0.67 and a debt-to-equity ratio of 0.75. The company has a fifty day moving average price of $93.50 and a two-hundred day moving average price of $89.23.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.57. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. Microchip Technology had a return on equity of 36.78% and a net margin of 24.98%. The firm’s revenue for the quarter was down 40.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.56 earnings per share. Sell-side analysts forecast that Microchip Technology Incorporated will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd were paid a $0.452 dividend. The ex-dividend date of this dividend was Tuesday, May 21st. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a yield of 1.94%. Microchip Technology’s payout ratio is currently 52.16%.

Insider Activity

In other news, VP Stephen V. Drehobl sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the sale, the vice president now owns 82,203 shares in the company, valued at $7,470,608.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP Stephen V. Drehobl sold 10,000 shares of Microchip Technology stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total value of $908,800.00. Following the transaction, the vice president now directly owns 82,203 shares in the company, valued at approximately $7,470,608.64. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Matthew W. Chapman sold 2,748 shares of the business’s stock in a transaction dated Monday, June 10th. The stock was sold at an average price of $93.88, for a total transaction of $257,982.24. Following the transaction, the director now owns 35,682 shares in the company, valued at $3,349,826.16. The disclosure for this sale can be found here. Over the last three months, insiders sold 23,993 shares of company stock valued at $2,251,857. Insiders own 2.07% of the company’s stock.

Institutional Trading of Microchip Technology

Several hedge funds have recently modified their holdings of MCHP. BKM Wealth Management LLC acquired a new stake in Microchip Technology in the fourth quarter valued at $27,000. Rakuten Securities Inc. purchased a new stake in Microchip Technology during the fourth quarter worth about $27,000. Rise Advisors LLC acquired a new position in Microchip Technology during the first quarter worth about $28,000. Fortitude Family Office LLC purchased a new position in Microchip Technology in the fourth quarter valued at about $29,000. Finally, Pineridge Advisors LLC acquired a new stake in shares of Microchip Technology during the 4th quarter valued at approximately $33,000. 91.51% of the stock is owned by institutional investors and hedge funds.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells 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 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.