Microchip Technology (NASDAQ:MCHP) Shares Gap Up - Time to Buy?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $58.86, but opened at $62.52. Microchip Technology shares last traded at $59.36, with a volume of 3,278,474 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MCHP. Citigroup lowered their target price on Microchip Technology from $92.00 to $82.00 and set a "buy" rating on the stock in a report on Wednesday, November 6th. Morgan Stanley decreased their price objective on Microchip Technology from $71.00 to $58.00 and set an "equal weight" rating on the stock in a research note on Tuesday, February 4th. StockNews.com lowered Microchip Technology from a "hold" rating to a "sell" rating in a research note on Monday, February 10th. Mizuho decreased their price objective on Microchip Technology from $85.00 to $72.00 and set an "outperform" rating on the stock in a research note on Friday, January 10th. Finally, B. Riley reaffirmed a "buy" rating and set a $75.00 price target (down from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $77.11.

Microchip Technology Stock Down 1.5 %

The stock has a market cap of $31.17 billion, a price-to-earnings ratio of 103.48 and a beta of 1.50. The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12. The stock has a fifty day moving average of $56.94 and a two-hundred day moving average of $67.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data 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 predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a yield of 3.14%. Microchip Technology's dividend payout ratio (DPR) is 325.00%.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,724 shares of the firm's stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total transaction 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 trade represents a 10.07 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.10% of the company's stock.

Institutional Trading of Microchip Technology

Large investors have recently bought and sold shares of the company. Mainstream Capital Management LLC purchased a new position in shares of Microchip Technology in the fourth quarter valued at $26,000. Rakuten Securities Inc. lifted its holdings in Microchip Technology by 309.5% in the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company's stock worth $27,000 after buying an additional 359 shares in the last quarter. Prospera Private Wealth LLC acquired a new position in Microchip Technology in the 3rd quarter worth $29,000. OFI Invest Asset Management acquired a new position in Microchip Technology in the 4th quarter worth $29,000. Finally, Financial Life Planners acquired a new position in Microchip Technology in the 4th quarter worth $32,000. 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.