Microchip Technology (MCHP) – Investment Analysts’ Weekly Ratings Changes

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A number of firms have modified their ratings and price targets on shares of Microchip Technology (NASDAQ: MCHP) recently:

  • 6/2/2020 – Microchip Technology had its price target raised by analysts at Mizuho from $92.00 to $105.00. They now have a “buy” rating on the stock.
  • 5/27/2020 – Microchip Technology was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $100.00 price target on the stock. According to Zacks, “Microchip’s Q4 earnings and revenues declined year over year. Sluggish demand across automotive, industrial and consumer home appliance end-markets owing to coronavirus crisis-induced broad-based macroeconomic weakness led to the decline. Notably, shares have underperformed the industry in the year-to-date period. However, coronavirus crisis-induced supply chain disruptions led to sequential increase in demand across communication and data center end-markets. Moreover, solid demand of microcontrollers holds promise. The company is also anticipated to witness strength in medical end market, driven by growth in demand for hospital equipment. Further, improving demand across office equipment and communication infrastructure, courtesy of requirement for cloud computing solutions amid coronavirus crisis led work-from-home wave, holds promise.”
  • 5/24/2020 – Microchip Technology had its “market perform” rating reaffirmed by analysts at Piper Sandler. They now have a $120.00 price target on the stock.
  • 5/19/2020 – Microchip Technology was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. They now have a $93.00 price target on the stock. According to Zacks, “Microchip’s Q4 earnings and revenues declined year over year. Sluggish demand across automotive, industrial and consumer home appliance end-markets owing to coronavirus crisis-induced broad-based macroeconomic weakness led to the decline. Notably, shares have underperformed the industry in the year-to-date period. However, coronavirus crisis-induced supply chain disruptions led to sequential increase in demand across communication and data center end-markets. Moreover, solid demand of microcontrollers holds promise. The company is also anticipated to witness strength in medical end market, driven by growth in demand for hospital equipment. Further, improving demand across office equipment and communication infrastructure, courtesy of requirement for cloud computing solutions amid coronavirus crisis led work-from-home wave, holds promise.”
  • 5/8/2020 – Microchip Technology had its price target raised by analysts at B. Riley from $81.00 to $85.00. They now have a “neutral” rating on the stock.
  • 5/8/2020 – Microchip Technology had its price target lowered by analysts at Cfra from $110.00 to $95.00. They now have a “hold” rating on the stock.
  • 5/8/2020 – Microchip Technology had its price target raised by analysts at Needham & Company LLC from $96.00 to $100.00. They now have a “buy” rating on the stock.
  • 5/6/2020 – Microchip Technology had its “buy” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $130.00 price target on the stock.
  • 5/4/2020 – Microchip Technology was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $89.00 price target on the stock. According to Zacks, “Microchip is expected to benefit from improvement in bookings across industrial, data center, and automotive end markets. The company’s expanding product portfolio, driven by new product launches, will likely be a key catalyst. Robust adoption of 8-bit, 16-bit and 32-bit microcontrollers, also bode well. Moreover, the company is well poised to capitalize on synergies from accretive Microsemi and Atmel acquisitions. Also, new design wins for the company’s PolarFire solutions are expected to drive FPGA revenues. However, significant exposure to Asian markets amid coronavirus outbreak is expected to put pressure on revenues. Markedly, the company anticipates that the economic slowdown caused by the coronavirus pandemic will lead to weakened demand for its products. Notably, shares have underperformed the industry in the year-to-date period.”
  • 5/1/2020 – Microchip Technology was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 4/15/2020 – Microchip Technology was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $97.00 price target on the stock. According to Zacks, “Microchip is expected to benefit from improvement in bookings across industrial, data center, and automotive end markets. The company’s expanding product portfolio, driven by new product launches, will likely be a key catalyst. Robust adoption of 8-bit, 16-bit and 32-bit microcontrollers, also bode well. Moreover, the company is well poised to capitalize on synergies from accretive Microsemi and Atmel acquisitions. Also, new design wins for the company’s PolarFire solutions are expected to drive FPGA revenues. However, significant exposure to Asian markets amid coronavirus outbreak is expected to put pressure on revenues. Markedly, the company anticipates that the economic slowdown caused by the coronavirus pandemic will lead to weakened demand for its products. Notably, shares have underperformed the industry in the year-to-date period.”
  • 4/13/2020 – Microchip Technology had its price target raised by analysts at SunTrust Banks, Inc. from $90.00 to $94.00. They now have a “buy” rating on the stock.
  • 4/9/2020 – Microchip Technology had its price target lowered by analysts at Susquehanna Bancshares Inc from $130.00 to $115.00. They now have a “positive” rating on the stock.
  • 4/9/2020 – Microchip Technology had its price target lowered by analysts at JPMorgan Chase & Co. from $115.00 to $100.00. They now have an “overweight” rating on the stock.
  • 4/9/2020 – Microchip Technology had its price target lowered by analysts at Wells Fargo & Co from $120.00 to $110.00. They now have an “overweight” rating on the stock.
  • 4/9/2020 – Microchip Technology had its price target raised by analysts at B. Riley from $70.00 to $81.00. They now have a “neutral” rating on the stock.
  • 4/7/2020 – Microchip Technology was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. They now have a $80.00 price target on the stock. According to Zacks, “Microchip is expected to benefit from improvement in bookings across industrial, data center, and automotive end markets. The company’s expanding product portfolio driven by new product roll outs is likely to be a key catalyst.  Robust adoption of its 8-bit, 16-bit and 32-bit microcontrollers, also bodes well. Moreover, the company is well poised to capitalize on synergies from accretive Microsemi and Atmel acquisitions. Also, new design wins for the company’s latest PolarFire solutions are expected to drive FPGA revenues. However, significant exposure to Asian markets amid coronavirus outbreak in China is anticipated to weigh on revenues. Markedly, the company reduced its revenue guidance owing to impact from coronavirus crisis. Notably, shares of the company have underperformed the industry in the past year.”
  • 4/6/2020 – Microchip Technology had its price target lowered by analysts at Raymond James from $125.00 to $100.00. They now have a “strong-buy” rating on the stock.
  • 4/3/2020 – Microchip Technology had its price target lowered by analysts at Needham & Company LLC from $140.00 to $100.00. They now have a “buy” rating on the stock.

NASDAQ MCHP traded up $1.78 during trading hours on Tuesday, reaching $97.52. 88,842 shares of the company’s stock were exchanged, compared to its average volume of 3,228,563. The firm has a fifty day moving average of $85.30 and a 200-day moving average of $92.16. Microchip Technology Inc. has a one year low of $53.15 and a one year high of $112.47. The stock has a market cap of $23.00 billion, a PE ratio of 43.93, a price-to-earnings-growth ratio of 1.32 and a beta of 1.61. The company has a current ratio of 1.35, a quick ratio of 0.94 and a debt-to-equity ratio of 1.59.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.35 by $0.11. Microchip Technology had a return on equity of 23.63% and a net margin of 10.82%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same quarter in the previous year, the firm earned $1.48 earnings per share. The business’s revenue was down .2% on a year-over-year basis. As a group, research analysts forecast that Microchip Technology Inc. will post 5 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be given a $0.3675 dividend. This represents a $1.47 annualized dividend and a yield of 1.51%. The ex-dividend date of this dividend is Wednesday, May 20th. This is a boost from Microchip Technology’s previous quarterly dividend of $0.37. Microchip Technology’s dividend payout ratio (DPR) is presently 28.38%.

In other news, CFO James Eric Bjornholt sold 2,756 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $86.92, for a total transaction of $239,551.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Richard J. Simoncic sold 3,958 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $86.92, for a total value of $344,029.36. Following the sale, the vice president now owns 19,213 shares of the company’s stock, valued at approximately $1,669,993.96. The disclosure for this sale can be found here. Insiders sold a total of 9,214 shares of company stock valued at $825,831 in the last 90 days. Corporate insiders own 2.21% of the company’s stock.

Hedge funds have recently made changes to their positions in the stock. Sugarloaf Wealth Management LLC bought a new position in shares of Microchip Technology during the first quarter worth $25,000. HHM Wealth Advisors LLC acquired a new stake in Microchip Technology during the 1st quarter worth $32,000. Pacitti Group Inc. bought a new position in Microchip Technology during the fourth quarter worth about $33,000. Allred Capital Management LLC grew its stake in Microchip Technology by 42.0% in the first quarter. Allred Capital Management LLC now owns 487 shares of the semiconductor company’s stock valued at $33,000 after acquiring an additional 144 shares during the period. Finally, Bourgeon Capital Management LLC bought a new stake in shares of Microchip Technology in the first quarter worth about $34,000.

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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