Microchip Technology (NASDAQ:MCHP) Trading Up 7.4% - Still a Buy?

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report)'s stock price rose 7.4% during mid-day trading on Wednesday . The stock traded as high as $61.97 and last traded at $62.15. Approximately 6,293,783 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 8,885,386 shares. The stock had previously closed at $57.86.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MCHP. Needham & Company LLC cut their price target on shares of Microchip Technology from $85.00 to $60.00 and set a "buy" rating for the company in a research note on Friday, February 7th. Susquehanna cut their target price on Microchip Technology from $95.00 to $90.00 and set a "positive" rating for the company in a research report on Wednesday, November 6th. Evercore ISI reiterated an "outperform" rating and issued a $95.00 price target (down from $101.00) on shares of Microchip Technology in a research report on Wednesday, November 6th. Piper Sandler reiterated an "overweight" rating and set a $65.00 price objective (down from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Finally, Raymond James restated a "strong-buy" rating and issued a $60.00 target price (down previously from $95.00) on shares of Microchip Technology in a research note on Friday, February 7th. Two analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $77.11.

Microchip Technology Trading Down 5.0 %

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 business's fifty day moving average is $56.68 and its two-hundred day moving average is $68.16. The firm has a market cap of $32.84 billion, a price-to-earnings ratio of 109.05 and a beta of 1.50.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 EPS 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%. Equities analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be issued a dividend of $0.455 per share. The ex-dividend date is Monday, February 24th. This represents a $1.82 annualized dividend and a yield of 2.98%. Microchip Technology's dividend payout ratio is currently 325.00%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of MCHP. Pallas Capital Advisors LLC acquired a new position in Microchip Technology in the fourth quarter valued at approximately $5,917,000. Consolidated Planning Corp bought a new stake in shares of Microchip Technology during the 4th quarter valued at $308,000. Quadrature Capital Ltd acquired a new position in shares of Microchip Technology in the 3rd quarter valued at $3,312,000. Symphony Financial Ltd. Co. bought a new position in shares of Microchip Technology in the 4th quarter worth $520,000. Finally, Benjamin Edwards Inc. grew its stake in shares of Microchip Technology by 5,185.4% during the third quarter. Benjamin Edwards Inc. now owns 9,408 shares of the semiconductor company's stock worth $755,000 after purchasing an additional 9,230 shares during the period. Institutional investors 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.