Microchip Technology (NASDAQ:MCHP)‘s stock had its “buy” rating reiterated by equities research analysts at Needham & Company LLC in a research note issued on Thursday.
The analysts wrote, “MCHP reported strong 2Q19 results driven by growth across all segments. MCHP is doing a good job of integrating Microsemi and forecasts $8 of EPS in FY20. Unsurprisingly, there’s a temporary pause in auto due to the transition to the new emission standards in Europe and softness in China. While uncertainty still exists around the Chinese tariffs, MCHP has reduced MSCC and internal inventory to managed levels. We see growth drivers in Aerospace/Defense, continued synergies from MSCC and de-leveraging. With the stock down 20% YTD, we believe the shares are discounting much of this uncertainty.””
A number of other analysts have also commented on the stock. BidaskClub raised shares of Microchip Technology from a “strong sell” rating to a “sell” rating in a report on Friday, November 2nd. Morgan Stanley lowered their target price on shares of Microchip Technology from $95.00 to $75.00 and set an “equal weight” rating for the company in a report on Wednesday, October 10th. Zacks Investment Research lowered shares of Microchip Technology from a “buy” rating to a “hold” rating in a report on Tuesday, October 9th. Raymond James lowered shares of Microchip Technology from an “outperform” rating to a “market perform” rating and set a $105.00 target price for the company. in a report on Tuesday, September 25th. Finally, KeyCorp assumed coverage on shares of Microchip Technology in a report on Tuesday, September 25th. They set a “sector weight” rating for the company. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $105.11.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Wednesday, November 7th. The semiconductor company reported $1.68 earnings per share for the quarter, beating analysts’ consensus estimates of $1.65 by $0.03. Microchip Technology had a net margin of 0.59% and a return on equity of 37.96%. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same quarter last year, the business posted $1.41 earnings per share. Microchip Technology’s revenue for the quarter was up 49.5% compared to the same quarter last year. Equities analysts predict that Microchip Technology will post 6.36 earnings per share for the current fiscal year.
In other news, COO Ganesh Moorthy purchased 12,000 shares of the firm’s stock in a transaction dated Tuesday, August 14th. The stock was bought at an average price of $84.10 per share, with a total value of $1,009,200.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO James Eric Bjornholt sold 1,887 shares of the business’s stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $84.33, for a total transaction of $159,130.71. The disclosure for this sale can be found here. 2.13% of the stock is owned by insiders.
Hedge funds have recently made changes to their positions in the company. M. Kraus & Co lifted its position in Microchip Technology by 70.3% in the 3rd quarter. M. Kraus & Co now owns 43,995 shares of the semiconductor company’s stock valued at $3,472,000 after acquiring an additional 18,160 shares in the last quarter. Point72 Asset Management L.P. bought a new stake in Microchip Technology in the 2nd quarter valued at $34,037,000. BKD Wealth Advisors LLC lifted its position in Microchip Technology by 4.5% in the 3rd quarter. BKD Wealth Advisors LLC now owns 45,917 shares of the semiconductor company’s stock valued at $3,623,000 after acquiring an additional 1,982 shares in the last quarter. Tredje AP fonden bought a new stake in Microchip Technology in the 2nd quarter valued at $2,321,000. Finally, Exane Derivatives lifted its position in Microchip Technology by 63.7% in the 3rd quarter. Exane Derivatives now owns 40,838 shares of the semiconductor company’s stock valued at $3,221,000 after acquiring an additional 15,890 shares in the last quarter.
Microchip Technology Company Profile
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.
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