Zacks Investment Research downgraded shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a research report released on Tuesday.
According to Zacks, “Microchip develops and manufacturers microcontrollers, memory and analog and interface products for embedded control systems. Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. Notably, shares of the company has outperformed the industry over the past one year. However, increasing lead time due to manufacturing constraints can impact gross margins. Additionally, given its extensive geographical foothold the company is continuously adversely impacted by exchange rate volatility while competition remains headwind.”
Several other equities analysts have also weighed in on MCHP. Needham & Company LLC restated a buy rating and issued a $120.00 price objective on shares of Microchip Technology in a report on Tuesday, September 19th. Morgan Stanley reaffirmed an overweight rating and issued a $94.00 target price on shares of Microchip Technology in a research note on Wednesday, September 20th. Stifel Nicolaus reaffirmed a buy rating and issued a $94.00 target price on shares of Microchip Technology in a research note on Thursday, September 28th. ValuEngine downgraded shares of Microchip Technology from a buy rating to a hold rating in a research note on Saturday, September 30th. Finally, Argus initiated coverage on shares of Microchip Technology in a research note on Friday, October 6th. They issued a buy rating and a $106.00 target price for the company. Six equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $101.24.
Shares of Microchip Technology (NASDAQ MCHP) traded up $1.33 during midday trading on Tuesday, reaching $93.44. 1,271,300 shares of the company traded hands, compared to its average volume of 1,890,000. Microchip Technology has a fifty-two week low of $64.68 and a fifty-two week high of $95.92. The firm has a market capitalization of $21,750.00, a price-to-earnings ratio of 37.38, a P/E/G ratio of 1.22 and a beta of 1.00. The company has a debt-to-equity ratio of 0.85, a current ratio of 3.33 and a quick ratio of 2.71.
Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Monday, November 6th. The semiconductor company reported $1.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.27 by $0.14. Microchip Technology had a net margin of 16.23% and a return on equity of 35.48%. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1 billion. During the same period in the prior year, the business posted $0.94 earnings per share. Microchip Technology’s revenue was up 16.2% compared to the same quarter last year. equities research analysts anticipate that Microchip Technology will post 5.12 earnings per share for the current fiscal year.
In other news, CFO James Eric Bjornholt sold 1,801 shares of the stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $91.66, for a total transaction of $165,079.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Stephen V. Drehobl sold 2,852 shares of the stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total transaction of $261,414.32. Following the sale, the vice president now directly owns 15,767 shares of the company’s stock, valued at approximately $1,445,203.22. The disclosure for this sale can be found here. 2.13% of the stock is owned by corporate insiders.
Hedge funds have recently modified their holdings of the company. Fox Run Management L.L.C. increased its position in shares of Microchip Technology by 248.8% during the third quarter. Fox Run Management L.L.C. now owns 15,000 shares of the semiconductor company’s stock worth $1,347,000 after acquiring an additional 10,700 shares in the last quarter. 361 Capital LLC grew its position in Microchip Technology by 35.3% in the second quarter. 361 Capital LLC now owns 48,830 shares of the semiconductor company’s stock valued at $3,769,000 after purchasing an additional 12,730 shares in the last quarter. Norinchukin Bank The grew its position in Microchip Technology by 13.2% in the second quarter. Norinchukin Bank The now owns 15,920 shares of the semiconductor company’s stock valued at $1,229,000 after purchasing an additional 1,857 shares in the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its position in Microchip Technology by 9.3% in the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 130,249 shares of the semiconductor company’s stock valued at $11,694,000 after purchasing an additional 11,068 shares in the last quarter. Finally, Handelsbanken Fonder AB grew its position in Microchip Technology by 26.2% in the third quarter. Handelsbanken Fonder AB now owns 96,400 shares of the semiconductor company’s stock valued at $8,655,000 after purchasing an additional 20,000 shares in the last quarter.
About Microchip Technology
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.
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