Traders Buy Shares of Microchip Technology (MCHP) on Weakness

Traders purchased shares of Microchip Technology Inc. (NASDAQ:MCHP) on weakness during trading hours on Tuesday. $75.99 million flowed into the stock on the tick-up and $57.20 million flowed out of the stock on the tick-down, for a money net flow of $18.79 million into the stock. Of all stocks tracked, Microchip Technology had the 28th highest net in-flow for the day. Microchip Technology traded down ($2.21) for the day and closed at $80.81

Several research analysts recently weighed in on MCHP shares. Zacks Investment Research upgraded Microchip Technology from a “hold” rating to a “buy” rating and set a $102.00 target price on the stock in a research note on Friday, November 10th. Bank of America dropped their target price on Microchip Technology from $120.00 to $110.00 and set a “buy” rating on the stock in a research note on Wednesday, February 7th. Morgan Stanley boosted their target price on Microchip Technology from $97.00 to $99.00 and gave the stock an “equal weight” rating in a research note on Wednesday, December 13th. Jefferies Group boosted their target price on Microchip Technology from $106.00 to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, November 7th. Finally, JPMorgan Chase & Co. restated an “overweight” rating and set a $120.00 target price on shares of Microchip Technology in a research note on Tuesday, November 7th. Five investment analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Microchip Technology presently has an average rating of “Buy” and a consensus target price of $102.35.

The company has a quick ratio of 2.33, a current ratio of 2.98 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $18,937.27, a PE ratio of 84.75, a P/E/G ratio of 1.08 and a beta of 1.05.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Tuesday, February 6th. The semiconductor company reported $1.36 EPS for the quarter, topping the Zacks’ consensus estimate of $1.35 by $0.01. Microchip Technology had a return on equity of 36.54% and a net margin of 6.33%. The company had revenue of $994.10 million during the quarter, compared to analysts’ expectations of $992.10 million. During the same quarter in the previous year, the firm posted $1.05 EPS. The firm’s revenue was up 19.1% compared to the same quarter last year. analysts predict that Microchip Technology Inc. will post 5.13 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 6th. Shareholders of record on Wednesday, February 21st will be given a dividend of $0.363 per share. The ex-dividend date is Tuesday, February 20th. This represents a $1.45 dividend on an annualized basis and a yield of 1.77%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.36. Microchip Technology’s payout ratio is currently 149.49%.

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,801 shares of Microchip Technology stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total transaction of $165,079.66. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Stephen V. Drehobl sold 2,852 shares of Microchip Technology stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value 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. Insiders own 2.13% of the company’s stock.

Several hedge funds have recently modified their holdings of MCHP. Zions Bancorporation lifted its holdings in shares of Microchip Technology by 215.5% in the 3rd quarter. Zions Bancorporation now owns 1,224 shares of the semiconductor company’s stock valued at $110,000 after buying an additional 836 shares during the period. Amica Retiree Medical Trust acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $121,000. Valeo Financial Advisors LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $146,000. Benjamin F. Edwards & Company Inc. lifted its holdings in shares of Microchip Technology by 608.4% in the 3rd quarter. Benjamin F. Edwards & Company Inc. now owns 2,104 shares of the semiconductor company’s stock valued at $189,000 after buying an additional 1,807 shares during the period. Finally, Twin Tree Management LP lifted its holdings in shares of Microchip Technology by 126.2% in the 4th quarter. Twin Tree Management LP now owns 2,210 shares of the semiconductor company’s stock valued at $194,000 after buying an additional 10,646 shares during the period.

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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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