Microchip Technology (NASDAQ:MCHP) Stock Gets Price Target Reduction from Morgan Stanley

Microchip Technology (NASDAQ:MCHP) had its price target lowered by Morgan Stanley from $103.00 to $72.00 in a research report sent to investors on Monday,Benzinga reports. Morgan Stanley currently has an equal weight rating on the semiconductor company’s stock.

Other equities research analysts have also issued research reports about the stock. Truist Financial cut their target price on shares of Microchip Technology from $90.00 to $62.00 and set a “hold” rating on the stock in a research note on Friday, November 6th. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. BMO Capital Markets initiated coverage on shares of Microchip Technology in a research note on Friday, August 21st. They set an “outperform” rating and a $95.00 price target on the stock. JPMorgan Chase & Co. lowered their target price on shares of Microchip Technology from $120.00 to $100.00 and set an “overweight” rating on the stock in a research note on Friday, November 6th. Finally, Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $90.18.

Microchip Technology Stock Up 3.0%

Shares of NASDAQ:MCHP opened at $62.13 on Monday. The business has a fifty day moving average price of $74.17 and a two-hundred day moving average price of $79.20. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a market capitalization of $33.81 billion, a PE ratio of 47.07, a price-to-earnings-growth ratio of 0.43 and a beta of 1.84. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.24 and a quick ratio of 1.33.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.03. Microchip Technology had a return on equity of 20.32% and a net margin of 14.96%. The company had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same quarter last year, the firm posted $0.35 EPS. The firm’s revenue for the quarter was up 42.2% on a year-over-year basis. Analysts forecast that Microchip Technology will post 3.19 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 8th. Investors of record on Monday, November 23rd will be paid a $0.4550 dividend. The ex-dividend date is Monday, November 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 2.9%. Microchip Technology’s dividend payout ratio (DPR) is 137.88%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in MCHP. TOP Private Wealth LLC. acquired a new position in shares of Microchip Technology in the second quarter worth about $29,000. Continuum Advisory LLC purchased a new stake in Microchip Technology during the 2nd quarter valued at about $30,000. Johnson Financial Group Inc. acquired a new stake in Microchip Technology in the 2nd quarter valued at about $31,000. Rakuten Securities Inc. acquired a new stake in Microchip Technology in the 2nd quarter valued at about $34,000. Finally, GK Wealth Management LLC purchased a new position in Microchip Technology in the 3rd quarter worth approximately $29,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology is a semiconductor company that develops and supplies components and systems for embedded control and connected applications. Its products include microcontrollers, microprocessors, analog and power-management devices, field-programmable gate arrays, timing products, and connectivity and security solutions. The company’s products are used in a range of markets, including automotive, industrial, communications, data center, consumer, and aerospace and defense. Microchip also provides development tools, software, and technical support to help customers design and build electronic systems.