Microchip Technology (NASDAQ:MCHP) Hits New 52-Week Low - Should You Sell?

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) shares hit a new 52-week low during trading on Monday . The company traded as low as $62.60 and last traded at $62.60, with a volume of 8229 shares changing hands. The stock had previously closed at $62.86.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on MCHP shares. KeyCorp reduced their price objective 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. Truist Financial lowered shares of Microchip Technology from a "buy" rating to a "hold" rating and reduced their price target for the company from $89.00 to $80.00 in a research report on Monday, September 23rd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $90.00 price objective on shares of Microchip Technology in a research report on Wednesday, November 6th. JPMorgan Chase & Co. reduced their target price on shares of Microchip Technology from $110.00 to $100.00 and set an "overweight" rating for the company in a research report on Friday, August 2nd. Finally, Susquehanna lowered their price target on shares of Microchip Technology from $95.00 to $90.00 and set a "positive" rating on the stock in a report on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $92.00.

Microchip Technology Stock Up 3.8 %

The company's 50 day simple moving average is $75.65 and its 200-day simple moving average is $84.03. 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 firm has a market capitalization of $35.04 billion, a PE ratio of 43.96 and a beta of 1.53.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter last year, the company earned $1.54 earnings per share. The firm's quarterly revenue was down 48.4% on a year-over-year basis. On average, analysts forecast that Microchip Technology Incorporated will post 1.38 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be issued 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 2.79%. Microchip Technology's dividend payout ratio is presently 127.27%.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the transaction, the chief financial officer now directly owns 33,257 shares in the company, valued at $2,710,445.50. This trade represents a 6.08 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Principal Financial Group Inc. increased its stake in shares of Microchip Technology by 0.4% during the second quarter. Principal Financial Group Inc. now owns 9,246,403 shares of the semiconductor company's stock valued at $846,046,000 after buying an additional 33,603 shares during the period. Van ECK Associates Corp increased its position in Microchip Technology by 25.1% during the 3rd quarter. Van ECK Associates Corp now owns 7,961,200 shares of the semiconductor company's stock valued at $599,239,000 after purchasing an additional 1,597,263 shares during the period. Boston Partners raised its holdings in Microchip Technology by 10.7% in the 1st quarter. Boston Partners now owns 7,591,471 shares of the semiconductor company's stock worth $681,838,000 after purchasing an additional 736,818 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Microchip Technology by 17.5% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,527,709 shares of the semiconductor company's stock worth $406,182,000 after purchasing an additional 673,992 shares during the period. Finally, Legal & General Group Plc boosted its stake in shares of Microchip Technology by 2.4% during the 2nd quarter. Legal & General Group Plc now owns 4,455,317 shares of the semiconductor company's stock valued at $407,660,000 after purchasing an additional 103,807 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

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.