Microchip Technology (NASDAQ:MCHP) Rating Lowered to Sell at Zacks Investment Research

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Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday, Zacks.com reports. They currently have a $96.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 4.68% from the stock’s previous close.

According to Zacks, “Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. Microchip also rides on strong demand for memory and analog and interface products. We believe that Microchip's expanding portfolio driven by new product roll outs will continue to expand customer base. Moreover, the company is well poised to capitalize on synergies from accretive Microsemi and Amtel acquisitions. However, Microchip is bearing the brunt of increasing lead time, slim demand trends in ZTE and Bitcoin business domains. Further, significant exposure to Asian markets amid imposition of tariff owing to trade war between the US and China is likely to weigh on margin expansion. Additionally, significant debt burden amid increasing expenses on product development remain major concerns.”

A number of other equities research analysts also recently weighed in on MCHP. Wells Fargo & Co reissued a “buy” rating on shares of Allergan in a research report on Tuesday, June 25th. BidaskClub downgraded Orthofix Medical from a “buy” rating to a “hold” rating in a research report on Monday, May 20th. B. Riley lifted their target price on Airgain from $19.00 to $22.00 and gave the stock a “buy” rating in a research report on Monday, May 6th. Longbow Research began coverage on Microchip Technology in a research report on Tuesday, July 9th. They set a “neutral” rating and a $87.93 target price on the stock. Finally, BMO Capital Markets lifted their target price on goeasy from C$55.00 to C$60.00 in a research report on Thursday, May 9th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and twelve have issued a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $102.89.

Microchip Technology stock opened at $91.71 on Friday. The company has a quick ratio of 0.63, a current ratio of 0.93 and a debt-to-equity ratio of 1.69. The business has a 50-day simple moving average of $84.93. The company has a market capitalization of $21.82 billion, a price-to-earnings ratio of 15.08, a PEG ratio of 1.21 and a beta of 1.42. Microchip Technology has a 52 week low of $60.70 and a 52 week high of $101.35.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Tuesday, May 7th. The semiconductor company reported $1.48 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.08. Microchip Technology had a return on equity of 29.27% and a net margin of 6.65%. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same period last year, the business earned $1.40 earnings per share. The firm’s revenue for the quarter was up 32.6% compared to the same quarter last year. On average, analysts predict that Microchip Technology will post 5.53 earnings per share for the current year.

In other Microchip Technology news, VP James Eric Bjornholt sold 2,188 shares of Microchip Technology stock in a transaction that occurred on Wednesday, May 22nd. The stock was sold at an average price of $80.99, for a total transaction of $177,206.12. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.13% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Clarfeld Financial Advisors LLC acquired a new position in shares of Microchip Technology in the 4th quarter worth approximately $26,000. Osborn Williams & Donohoe LLC acquired a new position in shares of Microchip Technology in the 1st quarter worth approximately $31,000. Parkside Financial Bank & Trust boosted its holdings in shares of Microchip Technology by 65.3% in the 1st quarter. Parkside Financial Bank & Trust now owns 433 shares of the semiconductor company’s stock worth $36,000 after acquiring an additional 171 shares in the last quarter. Gemmer Asset Management LLC boosted its holdings in shares of Microchip Technology by 186.5% in the 1st quarter. Gemmer Asset Management LLC now owns 487 shares of the semiconductor company’s stock worth $40,000 after acquiring an additional 317 shares in the last quarter. Finally, Zions Bancorporation N.A. acquired a new position in shares of Microchip Technology in the 1st quarter worth approximately $43,000.

About Microchip Technology

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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