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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) reached a new 52-week low during trading on Monday . The company traded as low as $57.94 and last traded at $58.94, with a volume of 1293893 shares traded. The stock had previously closed at $59.93.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Mizuho set a $95.00 price target on shares of Microchip Technology in a research report on Friday, October 18th. Truist Financial cut Microchip Technology from a "buy" rating to a "hold" rating and reduced their target price for the company from $89.00 to $80.00 in a report on Monday, September 23rd. Bank of America lowered Microchip Technology from a "neutral" rating to an "underperform" rating and lowered their price target for the stock from $80.00 to $65.00 in a research note on Monday. Jefferies Financial Group decreased their price objective on Microchip Technology from $100.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, November 6th. Finally, Stifel Nicolaus dropped their target price on shares of Microchip Technology from $90.00 to $87.00 and set a "buy" rating for the company in a report on Tuesday, December 3rd. 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 company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.63.

Microchip Technology Stock Performance

The firm has a 50 day simple moving average of $70.14 and a 200-day simple moving average of $79.54. The company has a market cap of $31.73 billion, a price-to-earnings ratio of 41.31 and a beta of 1.50. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued 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. The firm had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. Microchip Technology's revenue was down 48.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.54 EPS. As a group, analysts predict that Microchip Technology Incorporated will post 1.33 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 6th. Investors of record on Friday, November 22nd were given a dividend of $0.455 per share. The ex-dividend date was Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.08%. This is a boost from Microchip Technology's previous quarterly dividend of $0.45. Microchip Technology's dividend payout ratio (DPR) is presently 127.27%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MCHP. Prospera Private Wealth LLC purchased a new stake in shares of Microchip Technology in the 3rd quarter valued at $29,000. Peterson Financial Group Inc. acquired a new position in Microchip Technology in the 3rd quarter valued at about $34,000. Truvestments Capital LLC purchased a new stake in Microchip Technology during the third quarter worth about $34,000. Wolff Wiese Magana LLC lifted its position in shares of Microchip Technology by 55.2% during the third quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company's stock worth $49,000 after purchasing an additional 218 shares in the last quarter. Finally, Hobbs Group Advisors LLC lifted its position in shares of Microchip Technology by 390.6% during the third quarter. Hobbs Group Advisors LLC now owns 628 shares of the semiconductor company's stock worth $50,000 after purchasing an additional 500 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.