Microchip Technology (NASDAQ:MCHP) Rating Lowered to Underperform at Bank of America

Bank of America lowered shares of Microchip Technology (NASDAQ:MCHP) from a neutral rating to an underperform rating in a report released on Monday morning, MarketBeat reports. Bank of America currently has $65.00 price objective on the semiconductor company’s stock, down from their previous price objective of $80.00.

Several other brokerages have also recently issued reports on MCHP. Evercore ISI restated an “outperform” rating and set a $95.00 price objective (down previously from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $90.00 price objective on shares of Microchip Technology in a research note on Wednesday, November 6th. Truist Financial cut shares of Microchip Technology from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $89.00 to $80.00 in a research report on Monday, September 23rd. KeyCorp cut their price objective on Microchip Technology from $95.00 to $90.00 and set an “overweight” rating for the company in a report on Tuesday, December 3rd. Finally, Needham & Company LLC reissued a “buy” rating and issued a $85.00 price target on shares of Microchip Technology in a research note on Tuesday, December 3rd. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.63.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $59.08 on Monday. The company has a market capitalization of $31.73 billion, a PE ratio of 41.31 and a beta of 1.50. The business’s 50-day moving average price is $70.14 and its 200 day moving average price is $79.54. Microchip Technology has a twelve month low of $57.94 and a twelve month high of $100.57. The company has a current ratio of 0.88, a quick ratio of 0.48 and a debt-to-equity ratio of 0.71.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly 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 the consensus estimate of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The firm’s quarterly revenue was down 48.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.54 EPS. On average, research analysts predict that Microchip Technology will post 1.33 earnings per share for the current year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 6th. Stockholders of record on Friday, November 22nd were issued a dividend of $0.455 per share. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, November 22nd. This represents a $1.82 annualized dividend and a dividend yield of 3.08%. Microchip Technology’s payout ratio is presently 127.27%.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors have recently added to or reduced their stakes in MCHP. Quadrature Capital Ltd acquired a new stake in shares of Microchip Technology during the 3rd quarter worth approximately $3,312,000. Benjamin Edwards Inc. increased its stake in shares of Microchip Technology by 5,185.4% in the 3rd quarter. Benjamin Edwards Inc. now owns 9,408 shares of the semiconductor company’s stock valued at $755,000 after acquiring an additional 9,230 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Microchip Technology by 25.7% during the 3rd quarter. Empowered Funds LLC now owns 96,163 shares of the semiconductor company’s stock valued at $7,721,000 after purchasing an additional 19,663 shares in the last quarter. Harvest Fund Management Co. Ltd increased its stake in Microchip Technology by 52.1% during the 3rd quarter. Harvest Fund Management Co. Ltd now owns 24,713 shares of the semiconductor company’s stock worth $1,984,000 after purchasing an additional 8,467 shares in the last quarter. Finally, Harvey Partners LLC bought a new stake in Microchip Technology during the 3rd quarter worth approximately $20,554,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Company Profile

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.