Microchip Technology (NASDAQ:MCHP) Trading Down 3.9% After Analyst Downgrade

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) fell 3.9% on Friday after B. Riley lowered their price target on the stock from $93.00 to $85.00. B. Riley currently has a buy rating on the stock. Microchip Technology traded as low as $57.01 and last traded at $57.26. 875,467 shares were traded during trading, a decline of 88% from the average session volume of 7,023,287 shares. The stock had previously closed at $59.57.

A number of other equities research analysts have also issued reports on MCHP. KeyCorp reduced their price target on Microchip Technology from $90.00 to $70.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 14th. Needham & Company LLC reiterated a “buy” rating and issued a $85.00 price target on shares of Microchip Technology in a research note on Tuesday, December 3rd. Rosenblatt Securities restated a “buy” rating and issued a $90.00 price objective on shares of Microchip Technology in a report on Wednesday, November 6th. Piper Sandler lowered their target price on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a research note on Wednesday, November 6th. Finally, Jefferies Financial Group cut their price target on Microchip Technology from $100.00 to $90.00 and set a “buy” rating on the stock in a research note on Wednesday, November 6th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $84.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MCHP. Pallas Capital Advisors LLC acquired a new stake in Microchip Technology during the fourth quarter worth $5,917,000. Quadrature Capital Ltd acquired a new position in shares of Microchip Technology during the third quarter worth approximately $3,312,000. Benjamin Edwards Inc. boosted its position in Microchip Technology by 5,185.4% in the 3rd quarter. Benjamin Edwards Inc. now owns 9,408 shares of the semiconductor company’s stock valued at $755,000 after buying an additional 9,230 shares during the last quarter. Empowered Funds LLC increased its position in Microchip Technology by 25.7% in the third quarter. Empowered Funds LLC now owns 96,163 shares of the semiconductor company’s stock worth $7,721,000 after purchasing an additional 19,663 shares during the period. Finally, Assenagon Asset Management S.A. raised its stake in shares of Microchip Technology by 9,901.6% during the fourth quarter. Assenagon Asset Management S.A. now owns 2,857,654 shares of the semiconductor company’s stock worth $163,886,000 after buying an additional 2,829,082 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Stock Down 3.7 %

The firm’s 50-day simple moving average is $60.53 and its 200 day simple moving average is $72.98. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.48 and a current ratio of 0.88. The company has a market cap of $30.82 billion, a P/E ratio of 40.08 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP) last posted its 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 business had revenue of $1.16 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. Microchip Technology’s revenue for the quarter was down 48.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.54 EPS. On average, research analysts forecast that Microchip Technology Incorporated will post 1.31 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 6th. Stockholders of record on Friday, November 22nd were paid a dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, November 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 annualized dividend and a dividend yield of 3.17%. Microchip Technology’s payout ratio is currently 127.27%.

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.