Microchip Technology (NASDAQ:MCHP) Hits New 12-Month Low - Time to Sell?

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $71.63 and last traded at $71.89, with a volume of 175636 shares trading hands. The stock had previously closed at $72.87.

Analysts Set New Price Targets

A number of research analysts have issued reports on MCHP shares. TD Cowen lowered their price objective on Microchip Technology from $80.00 to $70.00 and set a "hold" rating for the company in a research note on Wednesday, November 6th. Evercore ISI restated an "outperform" rating and issued a $95.00 price target (down previously from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. Piper Sandler decreased their price target on Microchip Technology from $100.00 to $85.00 and set an "overweight" rating for the company in a research note on Wednesday, November 6th. Rosenblatt Securities restated a "buy" rating and issued a $90.00 price target on shares of Microchip Technology in a research note on Wednesday, November 6th. Finally, KeyCorp decreased their price target on Microchip Technology from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Wednesday, November 6th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $92.00.

Microchip Technology Stock Down 4.1 %

The company has a fifty day simple moving average of $76.73 and a 200-day simple moving average of $84.93. The company has a quick ratio of 1.08, a current ratio of 0.88 and a debt-to-equity ratio of 0.71. The firm has a market cap of $37.53 billion, a P/E ratio of 50.96 and a beta of 1.53.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.03. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the previous year, the company posted $1.54 earnings per share. Microchip Technology's revenue for the quarter was down 48.4% on a year-over-year basis. On average, equities analysts anticipate that Microchip Technology Incorporated will post 1.69 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be paid a $0.455 dividend. This is a positive change from Microchip Technology's previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.60%. Microchip Technology's dividend payout ratio is 127.27%.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 2,154 shares of the company's stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the transaction, the chief financial officer now owns 33,257 shares of the company's stock, valued at $2,710,445.50. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds have recently made changes to their positions in MCHP. Healthcare of Ontario Pension Plan Trust Fund boosted its stake in shares of Microchip Technology by 2,390.5% in the second quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,291,290 shares of the semiconductor company's stock worth $209,653,000 after acquiring an additional 2,199,290 shares during the period. Clearbridge Investments LLC lifted its position in shares of Microchip Technology by 18,944.8% in the first quarter. Clearbridge Investments LLC now owns 1,973,045 shares of the semiconductor company's stock worth $177,002,000 after buying an additional 1,962,685 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Microchip Technology by 2.9% in the first quarter. Vanguard Group Inc. now owns 68,583,723 shares of the semiconductor company's stock worth $6,152,646,000 after buying an additional 1,921,497 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Microchip Technology by 25.1% in the third quarter. Van ECK Associates Corp now owns 7,961,200 shares of the semiconductor company's stock worth $599,239,000 after buying an additional 1,597,263 shares in the last quarter. Finally, Canada Pension Plan Investment Board lifted its position in shares of Microchip Technology by 425.3% in the first quarter. Canada Pension Plan Investment Board now owns 1,377,099 shares of the semiconductor company's stock worth $123,540,000 after buying an additional 1,114,962 shares in the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Company Profile

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.