Microchip Technology (NASDAQ:MCHP) Shares Gap Down – What’s Next?

Microchip Technology Incorporated (NASDAQ:MCHP) gapped down before the market opened on Thursday . The stock had previously closed at $54.57, but opened at $52.28. Microchip Technology shares last traded at $51.62, with a volume of 1,205,500 shares trading hands.

Analysts Set New Price Targets

MCHP has been the subject of several recent research reports. Mizuho increased their price target on Microchip Technology from $58.00 to $68.00 and gave the company an “outperform” rating in a research report on Tuesday, March 4th. Evercore ISI increased their price target on Microchip Technology from $65.00 to $71.00 and gave the company an “outperform” rating in a research report on Tuesday, March 4th. StockNews.com lowered Microchip Technology from a “hold” rating to a “sell” rating in a research note on Monday, February 10th. Piper Sandler reaffirmed an “overweight” rating and issued a $65.00 price objective (down from $85.00) on shares of Microchip Technology in a research report on Friday, February 7th. Finally, Raymond James reaffirmed a “strong-buy” rating and issued a $60.00 price objective (down from $95.00) on shares of Microchip Technology in a research report on Friday, February 7th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.37.

Microchip Technology Price Performance

The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12. The company’s 50 day moving average is $56.17 and its 200 day moving average is $64.82. The firm has a market capitalization of $27.82 billion, a price-to-earnings ratio of 92.36 and a beta of 1.52.

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

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 7th. Investors of record on Monday, February 24th were paid a $0.455 dividend. The ex-dividend date was Monday, February 24th. This represents a $1.82 annualized dividend and a dividend yield of 3.52%. Microchip Technology’s dividend payout ratio (DPR) is presently 325.00%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,724 shares of the stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total transaction of $226,717.12. Following the sale, the chief financial officer now directly owns 33,272 shares in the company, valued at $2,025,599.36. This represents a 10.07 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Large investors have recently bought and sold shares of the company. Mainstream Capital Management LLC bought a new position in shares of Microchip Technology in the fourth quarter worth about $26,000. Rakuten Securities Inc. lifted its holdings in shares of Microchip Technology by 309.5% in the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 359 shares during the last quarter. Prospera Private Wealth LLC bought a new position in shares of Microchip Technology in the third quarter worth about $29,000. OFI Invest Asset Management bought a new position in shares of Microchip Technology in the fourth quarter worth about $29,000. Finally, Financial Life Planners bought a new position in shares of Microchip Technology in the fourth quarter worth about $32,000. 91.51% of the stock is currently 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.