Microchip Technology (NASDAQ:MCHP) Reaches New 52-Week Low – Should You Sell?

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price reached a new 52-week low on Friday . The company traded as low as $49.92 and last traded at $51.26, with a volume of 2475038 shares changing hands. The stock had previously closed at $51.00.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on MCHP shares. Raymond James reissued a “strong-buy” rating and set a $60.00 target price (down previously from $95.00) on shares of Microchip Technology in a research report on Friday, February 7th. Mizuho increased their target price on shares of Microchip Technology from $58.00 to $68.00 and gave the company an “outperform” rating in a research report on Tuesday, March 4th. TD Cowen increased their target price on shares of Microchip Technology from $50.00 to $60.00 and gave the company a “hold” rating in a research report on Tuesday, March 4th. Bank of America downgraded shares of Microchip Technology from a “neutral” rating to an “underperform” rating and decreased their target price for the company from $80.00 to $65.00 in a research report on Monday, December 16th. Finally, B. Riley reaffirmed a “buy” rating and set a $75.00 price objective (down previously from $85.00) on shares of Microchip Technology in a research report on Friday, February 7th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and an average target price of $74.37.

Microchip Technology Price Performance

The company has a debt-to-equity ratio of 1.12, a current ratio of 2.25 and a quick ratio of 1.23. The company has a market capitalization of $27.53 billion, a PE ratio of 91.39 and a beta of 1.52. The firm has a 50-day moving average of $56.24 and a 200 day moving average of $65.03.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. As a group, research analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were given a dividend of $0.455 per share. The ex-dividend date was Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.56%. Microchip Technology’s payout ratio is currently 325.00%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 3,724 shares of Microchip Technology stock in a transaction that occurred on Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total transaction of $226,717.12. Following the sale, the chief financial officer now owns 33,272 shares of the company’s stock, valued at approximately $2,025,599.36. This trade represents a 10.07 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.10% of the company’s stock.

Institutional Trading of Microchip Technology

A number of large investors have recently added to or reduced their stakes in the company. United Bank increased its position in shares of Microchip Technology by 21.0% during the 3rd quarter. United Bank now owns 9,871 shares of the semiconductor company’s stock valued at $793,000 after purchasing an additional 1,712 shares during the last quarter. OneDigital Investment Advisors LLC increased its position in shares of Microchip Technology by 6.7% during the 3rd quarter. OneDigital Investment Advisors LLC now owns 4,458 shares of the semiconductor company’s stock valued at $358,000 after purchasing an additional 280 shares during the last quarter. Quest Partners LLC increased its position in shares of Microchip Technology by 463,300.0% during the 3rd quarter. Quest Partners LLC now owns 4,634 shares of the semiconductor company’s stock valued at $372,000 after purchasing an additional 4,633 shares during the last quarter. B. Metzler seel. Sohn & Co. Holding AG bought a new position in shares of Microchip Technology during the 3rd quarter valued at approximately $2,203,000. Finally, West Family Investments Inc. purchased a new position in Microchip Technology during the 3rd quarter valued at $203,000. Institutional investors own 91.51% of the company’s stock.

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.