BidaskClub Lowers Microchip Technology (MCHP) to Strong Sell

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BidaskClub downgraded shares of Microchip Technology (NASDAQ:MCHP) from a sell rating to a strong sell rating in a report issued on Tuesday.

Several other research firms also recently commented on MCHP. JPMorgan Chase & Co. reduced their price objective on Microchip Technology from $125.00 to $113.00 and set an overweight rating on the stock in a report on Friday, August 10th. KeyCorp cut their price target on Microchip Technology from $116.00 to $111.00 and set an overweight rating on the stock in a report on Friday, August 10th. Argus lifted their price target on Microchip Technology to $115.00 and gave the company an average rating in a report on Monday, June 25th. They noted that the move was a valuation call. Nomura started coverage on Microchip Technology in a research note on Wednesday, July 18th. They set a buy rating and a $110.00 target price on the stock. Finally, Piper Jaffray Companies boosted their target price on Microchip Technology from $110.00 to $150.00 and gave the stock an overweight rating in a research note on Friday, July 27th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. Microchip Technology presently has an average rating of Buy and an average price target of $111.05.

MCHP traded up $0.56 during trading on Tuesday, hitting $68.26. 5,407,325 shares of the stock were exchanged, compared to its average volume of 3,087,909. The company has a market capitalization of $18.59 billion, a P/E ratio of 13.15, a PEG ratio of 0.83 and a beta of 1.10. Microchip Technology has a 1 year low of $65.13 and a 1 year high of $104.20. The company has a quick ratio of 0.80, a current ratio of 1.32 and a debt-to-equity ratio of 1.96.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 9th. The semiconductor company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.48 by $0.13. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. Microchip Technology had a return on equity of 36.33% and a net margin of 2.85%. Microchip Technology’s quarterly revenue was up 24.7% on a year-over-year basis. During the same period last year, the business posted $1.31 EPS. Equities analysts anticipate that Microchip Technology will post 6.51 earnings per share for the current year.

In other Microchip Technology news, VP Stephen V. Drehobl sold 3,998 shares of Microchip Technology stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $84.33, for a total transaction of $337,151.34. Following the completion of the sale, the vice president now owns 16,931 shares of the company’s stock, valued at approximately $1,427,791.23. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Ganesh Moorthy purchased 12,000 shares of the stock in a transaction on Tuesday, August 14th. The shares were purchased at an average cost of $84.10 per share, with a total value of $1,009,200.00. The disclosure for this purchase can be found here. Insiders own 2.13% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of MCHP. Dimensional Fund Advisors LP lifted its holdings in shares of Microchip Technology by 2.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 765,269 shares of the semiconductor company’s stock valued at $69,914,000 after buying an additional 20,435 shares during the period. GSA Capital Partners LLP acquired a new position in shares of Microchip Technology in the 1st quarter valued at about $868,000. Principal Financial Group Inc. lifted its holdings in shares of Microchip Technology by 0.4% in the 1st quarter. Principal Financial Group Inc. now owns 5,616,587 shares of the semiconductor company’s stock valued at $513,132,000 after buying an additional 24,008 shares during the period. Rampart Investment Management Company LLC lifted its holdings in shares of Microchip Technology by 127.3% in the 1st quarter. Rampart Investment Management Company LLC now owns 7,105 shares of the semiconductor company’s stock valued at $649,000 after buying an additional 3,979 shares during the period. Finally, Platinum Investment Management Ltd. lifted its holdings in shares of Microchip Technology by 138.7% in the 1st quarter. Platinum Investment Management Ltd. now owns 651,200 shares of the semiconductor company’s stock valued at $59,493,000 after buying an additional 378,400 shares during the period.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.

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