Microchip Technology (NASDAQ:MCHP) Hits New 1-Year Low on Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP) shares reached a new 52-week low on Friday after Mizuho lowered their price target on the stock from $85.00 to $72.00. Mizuho currently has an outperform rating on the stock. Microchip Technology traded as low as $54.81 and last traded at $54.98, with a volume of 493847 shares changing hands. The stock had previously closed at $56.38.

Other equities analysts have also issued research reports about the stock. Evercore ISI reiterated an “outperform” rating and set a $95.00 price target (down previously from $101.00) on shares of Microchip Technology in a report on Wednesday, November 6th. TD Cowen decreased their price objective on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a research report on Wednesday, November 6th. StockNews.com upgraded shares of Microchip Technology from a “sell” rating to a “hold” rating in a report on Friday, December 13th. Rosenblatt Securities reiterated a “buy” rating and set a $90.00 price target on shares of Microchip Technology in a report on Wednesday, November 6th. Finally, Piper Sandler dropped their price objective on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 6th. One analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $87.11.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently made changes to their positions in MCHP. West Oak Capital LLC lifted its stake in Microchip Technology by 406.3% during the 4th quarter. West Oak Capital LLC now owns 2,025 shares of the semiconductor company’s stock valued at $116,000 after acquiring an additional 1,625 shares in the last quarter. Franklin Street Advisors Inc. NC lifted its position in shares of Microchip Technology by 70.9% during the fourth quarter. Franklin Street Advisors Inc. NC now owns 7,192 shares of the semiconductor company’s stock valued at $412,000 after purchasing an additional 2,983 shares in the last quarter. Ridgewood Investments LLC increased its stake in Microchip Technology by 238.4% in the 4th quarter. Ridgewood Investments LLC now owns 19,086 shares of the semiconductor company’s stock valued at $1,095,000 after buying an additional 13,446 shares during the last quarter. ST Germain D J Co. Inc. bought a new position in shares of Microchip Technology during the 4th quarter worth approximately $97,000. Finally, Watts Gwilliam & Co. LLC boosted its stake in shares of Microchip Technology by 250.5% in the 4th quarter. Watts Gwilliam & Co. LLC now owns 26,861 shares of the semiconductor company’s stock worth $1,544,000 after buying an additional 19,198 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Trading Down 2.1 %

The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48. The company has a market capitalization of $29.64 billion, a P/E ratio of 38.59 and a beta of 1.52. The firm has a fifty day moving average price of $62.84 and a 200-day moving average price of $74.91.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.03. The firm had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The business’s revenue was down 48.4% compared to the same quarter last year. During the same period last year, the firm posted $1.54 EPS. On average, equities research analysts anticipate that Microchip Technology Incorporated will post 1.33 earnings per share for the current year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 6th. Shareholders of record on Friday, November 22nd were paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 3.30%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, November 22nd. Microchip Technology’s payout ratio is presently 127.27%.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.