Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, January 3rd.
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. 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 analysts have also commented on the company. Piper Jaffray Companies initiated coverage on Microchip Technology in a report on Monday, December 18th. They issued an “overweight” rating and a $100.00 price objective on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $120.00 price target on shares of Microchip Technology in a research note on Friday, September 8th. Morgan Stanley lifted their price target 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. Credit Suisse Group reaffirmed an “outperform” rating and issued a $110.00 price target (up from $95.00) on shares of Microchip Technology in a research note on Tuesday, November 7th. Finally, SunTrust Banks reissued a “hold” rating and set a $90.00 price objective on shares of Microchip Technology in a research note on Thursday, October 12th. Six equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $101.24.
Shares of Microchip Technology (NASDAQ MCHP) traded up $1.33 during trading hours on Wednesday, hitting $93.44. The stock had a trading volume of 1,271,326 shares, compared to its average volume of 1,422,682. Microchip Technology has a 1 year low of $64.68 and a 1 year high of $95.92. The stock has a market capitalization of $21,545.03, a PE ratio of 37.38, a price-to-earnings-growth ratio of 1.22 and a beta of 1.00. The company has a debt-to-equity ratio of 0.85, a quick ratio of 2.71 and a current ratio of 3.33.
Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Monday, November 6th. The semiconductor company reported $1.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.14. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1 billion. Microchip Technology had a return on equity of 35.48% and a net margin of 16.23%. The company’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period last year, the business posted $0.94 earnings per share. research analysts expect that Microchip Technology will post 5.12 EPS for the current fiscal year.
In related news, CFO James Eric Bjornholt sold 1,801 shares of the company’s stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value of $165,079.66. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Stephen V. Drehobl sold 2,852 shares of the company’s stock in a transaction dated Wednesday, November 22nd. The shares were sold at an average price of $91.66, for a total value of $261,414.32. Following the completion of the sale, the vice president now directly owns 15,767 shares of the company’s stock, valued at $1,445,203.22. The disclosure for this sale can be found here. Corporate insiders own 2.13% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. Janus Henderson Group PLC raised its stake in Microchip Technology by 2,959.9% during the 2nd quarter. Janus Henderson Group PLC now owns 8,073,264 shares of the semiconductor company’s stock valued at $623,093,000 after acquiring an additional 7,809,422 shares during the last quarter. Fred Alger Management Inc. raised its stake in shares of Microchip Technology by 80.9% during the 2nd quarter. Fred Alger Management Inc. now owns 3,349,037 shares of the semiconductor company’s stock worth $258,479,000 after buying an additional 1,497,699 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Microchip Technology by 4.6% during the 2nd quarter. Vanguard Group Inc. now owns 23,622,558 shares of the semiconductor company’s stock worth $1,823,190,000 after buying an additional 1,042,622 shares in the last quarter. Ameriprise Financial Inc. raised its stake in shares of Microchip Technology by 75.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,403,141 shares of the semiconductor company’s stock worth $185,475,000 after buying an additional 1,033,992 shares in the last quarter. Finally, Atlantic Trust Group LLC raised its stake in shares of Microchip Technology by 255.3% during the 3rd quarter. Atlantic Trust Group LLC now owns 1,381,312 shares of the semiconductor company’s stock worth $124,014,000 after buying an additional 992,572 shares in the last quarter.
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Microchip Technology Company Profile
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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