Microchip Technology (NASDAQ:MCHP) Reaches New 1-Year Low After Earnings Miss

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $50.93 and last traded at $51.95, with a volume of 4016937 shares changing hands. The stock had previously closed at $53.11.

The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.51%. The ex-dividend date is Monday, February 24th. Microchip Technology’s dividend payout ratio (DPR) is presently 127.27%.

Analyst Ratings Changes

MCHP has been the subject of a number of analyst reports. Piper Sandler reissued an “overweight” rating and issued a $65.00 price objective (down previously from $85.00) on shares of Microchip Technology in a report on Friday. Rosenblatt Securities reissued a “buy” rating and issued a $90.00 price target on shares of Microchip Technology in a research note on Thursday. Jefferies Financial Group cut their price target on shares of Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a report on Wednesday, November 6th. Stifel Nicolaus decreased their price objective on Microchip Technology from $90.00 to $87.00 and set a “buy” rating on the stock in a report on Tuesday, December 3rd. Finally, Evercore ISI reissued an “outperform” rating and set a $95.00 target price (down previously from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $77.11.

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mainstream Capital Management LLC acquired a new stake in shares of Microchip Technology in the fourth quarter valued at $26,000. Prospera Private Wealth LLC purchased a new stake in Microchip Technology during the 3rd quarter worth about $29,000. OFI Invest Asset Management acquired a new stake in Microchip Technology in the 4th quarter valued at about $29,000. Financial Life Planners purchased a new position in shares of Microchip Technology in the 4th quarter valued at about $32,000. Finally, Peterson Financial Group Inc. acquired a new position in shares of Microchip Technology during the third quarter worth about $34,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Price Performance

The stock’s 50 day moving average is $58.04 and its two-hundred day moving average is $70.26. The stock has a market capitalization of $27.87 billion, a PE ratio of 36.29 and a beta of 1.50. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48.

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.