Microchip Technology (NASDAQ:MCHP) Downgraded by StockNews.com to “Sell”

StockNews.com cut shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a sell rating in a research report released on Tuesday morning.

Several other analysts have also recently weighed in on the company. Truist Financial cut Microchip Technology from a buy rating to a hold rating and cut their price objective for the company from $89.00 to $80.00 in a research report on Monday, September 23rd. Citigroup dropped their target price on shares of Microchip Technology from $104.00 to $92.00 and set a buy rating on the stock in a report on Friday, August 2nd. Piper Sandler upgraded shares of Microchip Technology from a neutral rating to an overweight rating and increased their price target for the stock from $90.00 to $100.00 in a research note on Friday, August 16th. Needham & Company LLC dropped their price objective on shares of Microchip Technology from $100.00 to $96.00 and set a buy rating on the stock in a research note on Monday, August 5th. Finally, B. Riley decreased their target price on shares of Microchip Technology from $110.00 to $103.00 and set a buy rating for the company in a research note on Friday, August 2nd. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of Moderate Buy and an average price target of $99.47.

Microchip Technology Stock Up 0.3 %

Shares of NASDAQ:MCHP opened at $80.59 on Tuesday. The company has a market cap of $43.24 billion, a PE ratio of 23.14 and a beta of 1.53. Microchip Technology has a 1 year low of $68.75 and a 1 year high of $100.57. The stock’s 50-day moving average is $79.97 and its 200 day moving average is $87.42. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.94 and a quick ratio of 1.08.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.52 by $0.01. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The company’s revenue for the quarter was down 45.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.56 EPS. Sell-side analysts anticipate that Microchip Technology will post 1.74 EPS for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Thursday, August 22nd were issued a $0.454 dividend. This represents a $1.82 annualized dividend and a yield of 2.25%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Thursday, August 22nd. Microchip Technology’s dividend payout ratio (DPR) is presently 52.45%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of the firm’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the sale, the chief financial officer now owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 2.07% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MCHP. Financial Counselors Inc. grew its position in shares of Microchip Technology by 1.1% during the 1st quarter. Financial Counselors Inc. now owns 10,689 shares of the semiconductor company’s stock valued at $959,000 after acquiring an additional 119 shares during the period. SeaCrest Wealth Management LLC raised its stake in Microchip Technology by 3.3% during the 2nd quarter. SeaCrest Wealth Management LLC now owns 4,147 shares of the semiconductor company’s stock worth $379,000 after acquiring an additional 131 shares during the period. Meridian Wealth Management LLC raised its stake in Microchip Technology by 5.1% during the 1st quarter. Meridian Wealth Management LLC now owns 2,810 shares of the semiconductor company’s stock worth $252,000 after acquiring an additional 137 shares during the period. Horizon Bancorp Inc. IN lifted its holdings in Microchip Technology by 11.8% during the first quarter. Horizon Bancorp Inc. IN now owns 1,370 shares of the semiconductor company’s stock valued at $123,000 after purchasing an additional 145 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI boosted its position in shares of Microchip Technology by 4.5% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 3,470 shares of the semiconductor company’s stock worth $318,000 after purchasing an additional 148 shares during the period. Institutional investors own 91.51% of the company’s stock.

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.