Microchip Technology Incorporated (NASDAQ:MCHP – Get Rating) shares have received a consensus ‘Buy’ rating from the twenty-one brokers currently covering the stock, reports Marketbeat.com. One research analyst has rated the stock with a hold rating, fourteen have assigned a buy rating and one has rated the stock with a strong buy rating. The average 1-year target price among analysts who have covered the stock for the past year is $89.30.
MCHP has been the subject of a number of analyst reports. Needham & Company LLC lowered its target price on Microchip Technology to $75.00 in a research report on Tuesday, July 5th. Morgan Stanley lowered its price target on Microchip Technology to $81.00 from $85.00 and gave the company an “overweight” rating in a report on Friday, June 10. Citigroup lowered its target price on Microchip Technology to $72.00 from $78.00 in a report Tuesday, May 10. BMO Capital Markets lowered its target price on Microchip Technology to $85.00 from $95.00 in a report Tuesday, May 10. Finally, StockNews.com upgraded Microchip Technology from a “hold” rating to a “buy” rating in a research report Tuesday, May 17th.
Microchip Technology trading up 0.2%
NASDAQ:MCHP shares opened at $69.27 on Wednesday. The company’s 50-day moving average is $63.52 and its 200-day moving average is $68.46. Microchip Technology has a 1 year low of $54.33 and a 1 year high of $90.00. The company has a market cap of $38.27 billion, a P/E of 30.58, a P/E of 1.07, and a beta of 1.62. The company has a leverage ratio of 1.30, a current ratio of 1.75 and a quick ratio of 1.14.
Microchip Technology (NASDAQ:MCHP – Get Rating) last announced its earnings results on Monday, May 9th. The semiconductor company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.17 by $0.09. The company had revenue of $1.84 billion in the quarter, compared to analyst estimates of $1.82 billion. Microchip Technology had a return on equity of 41.89% and a net margin of 18.85%. Microchip Technology’s quarterly revenue increased 25.6% compared to the same quarter last year. In the same period last year, the company generated earnings per share of $0.82. On average, research analysts are forecasting that Microchip Technology will report earnings per share of 5.14 for the current fiscal year.
Microchip Technology increases dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, September 2nd. Investors of record on Friday, August 19 will receive a dividend of $0.301. That equates to a dividend of $1.20 on an annualized basis and a yield of 1.74%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.28. Microchip Technology’s dividend payout ratio is currently 48.57%.
Insiders place their bets
In other news, CEO Ganesh Moorthy acquired 8,000 shares of the company in a transaction that took place on Friday June 17th. The stock was acquired at an average price of $57.29 per share for a total transaction of $458,320.00. Upon completion of the acquisition, the Chief Executive Officer now owns 720,313 shares of the Company, valued at $41,266,731.77. The transaction was disclosed in a filing with the Securities & Exchange Commission available at this hyperlink. Also, CEO Ganesh Moorthy acquired 8,000 shares of the company’s stock in a transaction that took place on Friday, June 17th. The stock was acquired at an average price of $57.29 per share for a total value of $458,320.00. Following the acquisition, the Chief Executive Officer now owns 720,313 shares of the Company, valued at approximately $41,266,731.77. The acquisition was disclosed in a filing with the Securities & Exchange Commission, available at this hyperlink. In addition, CFO James Eric Bjornholt sold 2,326 shares of Microchip Technology in a transaction that took place on Monday, May 23rd. The stock sold at an average price of $66.66 for a total value of $155,051.16. Following the sale, the Chief Financial Officer now directly owns 34,207 shares of the company, valued at $2,280,238.62. The disclosure for this sale can be found here. Insiders have sold 9,564 shares of the company’s stock valued at $637,217 over the past ninety days. 2.00% of the shares are currently owned by company insiders.
Institutional investors rely on microchip technology
Hedge funds and other institutional investors have recently bought and sold shares in the company. Dodge & Cox increased its stake in Microchip Technology by 87.3% in the fourth quarter. Dodge & Cox now owns 29,539,169 shares of the semiconductor company worth $2,571,680,000 after purchasing an additional 13,768,272 shares during the period. Geode Capital Management LLC increased its position in Microchip Technology by 107.9% during the fourth quarter. Geode Capital Management LLC now owns 10,352,013 shares of the semiconductor company worth $898,949,000 after purchasing an additional 5,373,594 shares last quarter. Norges Bank acquired a new stake in Microchip Technology during the fourth quarter for approximately $462,517,000. Principal Financial Group Inc. increased its stake in Microchip Technology by 95.7% in the fourth quarter. Principal Financial Group Inc. now owns 10,618,059 shares of the semiconductor company valued at $934,445,000 after purchasing an additional 5,193,267 shares last quarter. Finally, in Q1, Boston Partners acquired a new interest in Microchip Technology for approximately $309,618,000. Institutional investors own 89.36% of the company’s shares.
Company Profile of Microchip Technology
Microchip Technology Incorporated designs, manufactures and sells intelligent, connected and secure embedded control solutions in North and South America, Europe and Asia. The company offers general-purpose 8-bit, 16-bit and 32-bit microcontrollers; 32-bit embedded microprocessor markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power, motor control, human-machine interface, security, wired, and wireless connectivity applications.
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