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

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday . The company traded as low as $49.92 and last traded at $51.26, with a volume of 2475038 shares trading hands. The stock had previously closed at $51.00.

Analysts Set New Price Targets

Several brokerages have weighed in on MCHP. TD Cowen upped their target price on Microchip Technology from $50.00 to $60.00 and gave the stock a "hold" rating in a research report on Tuesday, March 4th. Needham & Company LLC increased their price objective on Microchip Technology from $60.00 to $66.00 and gave the stock a "buy" rating in a report on Tuesday, March 4th. B. Riley reiterated a "buy" rating and issued a $75.00 target price (down from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Bank of America lowered shares of Microchip Technology from a "neutral" rating to an "underperform" rating and dropped their price target for the stock from $80.00 to $65.00 in a research note on Monday, December 16th. Finally, StockNews.com lowered shares of Microchip Technology from a "hold" rating to a "sell" rating in a research note on Monday, February 10th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus target price of $74.37.

Remove Ads

Microchip Technology Trading Up 3.9 %

The business's fifty day simple moving average is $56.17 and its two-hundred day simple moving average is $64.66. The company has a current ratio of 2.25, a quick ratio of 1.23 and a debt-to-equity ratio of 1.12. The stock has a market capitalization of $28.90 billion, a P/E ratio of 96.15 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. As a group, analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were given a dividend of $0.455 per share. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.82 annualized dividend and a dividend yield of 3.39%. Microchip Technology's dividend payout ratio (DPR) is currently 325.00%.

Insider Activity at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,724 shares of the company's stock in a transaction that occurred on Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total value of $226,717.12. Following the sale, the chief financial officer now directly owns 33,272 shares in the company, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 2.10% of the stock is currently owned by insiders.

Institutional Trading of Microchip Technology

Institutional investors have recently bought and sold shares of the stock. Federated Hermes Inc. boosted its stake in shares of Microchip Technology by 0.5% in the 4th quarter. Federated Hermes Inc. now owns 39,298 shares of the semiconductor company's stock valued at $2,254,000 after purchasing an additional 209 shares in the last quarter. Northwest Bank & Trust Co lifted its holdings in Microchip Technology by 3.0% during the 4th quarter. Northwest Bank & Trust Co now owns 7,392 shares of the semiconductor company's stock valued at $424,000 after purchasing an additional 217 shares during the last quarter. Coldstream Capital Management Inc. grew its holdings in shares of Microchip Technology by 2.4% during the third quarter. Coldstream Capital Management Inc. now owns 11,052 shares of the semiconductor company's stock worth $878,000 after purchasing an additional 260 shares during the last quarter. EP Wealth Advisors LLC increased its stake in shares of Microchip Technology by 1.8% in the third quarter. EP Wealth Advisors LLC now owns 14,725 shares of the semiconductor company's stock valued at $1,182,000 after buying an additional 264 shares in the last quarter. Finally, Lebenthal Global Advisors LLC raised its holdings in shares of Microchip Technology by 7.3% in the fourth quarter. Lebenthal Global Advisors LLC now owns 3,894 shares of the semiconductor company's stock valued at $223,000 after buying an additional 266 shares during the last quarter. Institutional investors and hedge funds 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.