Microchip Technology (NASDAQ:MCHP) Price Target Cut to $89.00 by Analysts at Truist Financial

Microchip Technology (NASDAQ:MCHP) had its target price cut by Truist Financial from $96.00 to $89.00 in a report released on Friday morning, Benzinga reports. They currently have a buy rating on the semiconductor company’s stock.

Several other equities analysts have also issued reports on MCHP. Piper Sandler reaffirmed a neutral rating and issued a $90.00 target price (up from $80.00) on shares of Microchip Technology in a report on Tuesday, May 7th. Bank of America downgraded Microchip Technology from a buy rating to a neutral rating and dropped their price objective for the company from $110.00 to $90.00 in a research note on Friday. Citigroup upped their price objective on Microchip Technology from $100.00 to $104.00 and gave the company a buy rating in a research note on Tuesday, May 7th. UBS Group upped their price objective on Microchip Technology from $95.00 to $103.00 and gave the company a buy rating in a research note on Tuesday, May 7th. Finally, Morgan Stanley downgraded Microchip Technology from an overweight rating to an equal weight rating and dropped their price objective for the company from $102.00 to $100.00 in a research note on Thursday, July 11th. Seven equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of Moderate Buy and a consensus price target of $99.15.

Microchip Technology Stock Performance

Shares of MCHP stock traded down $8.94 during trading on Friday, hitting $75.43. The company’s stock had a trading volume of 17,482,866 shares, compared to its average volume of 6,510,382. The company has a market cap of $40.47 billion, a PE ratio of 21.74 and a beta of 1.54. The company has a current ratio of 1.20, a quick ratio of 0.67 and a debt-to-equity ratio of 0.75. The business has a fifty day moving average of $91.66 and a 200-day moving average of $89.39. Microchip Technology has a 52 week low of $68.75 and a 52 week high of $100.57.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.01. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.24 billion. Microchip Technology had a return on equity of 27.82% and a net margin of 20.80%. Microchip Technology’s quarterly revenue was down 45.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.56 earnings per share. As a group, research analysts anticipate that Microchip Technology will post 2.35 earnings per share for the current year.

Microchip Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be given a $0.454 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.41%. The ex-dividend date of this dividend is Thursday, August 22nd. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is 52.16%.

Insider Buying and Selling

In related news, Director Matthew W. Chapman sold 2,748 shares of the stock in a transaction on Monday, June 10th. The stock was sold at an average price of $93.88, for a total value of $257,982.24. Following the sale, the director now owns 35,682 shares in the company, valued at $3,349,826.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, VP Stephen V. Drehobl sold 7,830 shares of the stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $95.06, for a total value of $744,319.80. Following the transaction, the vice president now owns 79,509 shares of the company’s stock, valued at $7,558,125.54. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Matthew W. Chapman sold 2,748 shares of the stock in a transaction on Monday, June 10th. The shares were sold at an average price of $93.88, for a total value of $257,982.24. Following the completion of the transaction, the director now directly owns 35,682 shares in the company, valued at approximately $3,349,826.16. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 23,993 shares of company stock worth $2,251,857. Corporate insiders own 2.07% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Rakuten Securities Inc. bought a new position in Microchip Technology in the fourth quarter valued at $27,000. Rise Advisors LLC bought a new position in shares of Microchip Technology during the first quarter valued at about $28,000. Pineridge Advisors LLC bought a new position in shares of Microchip Technology during the fourth quarter valued at about $33,000. Steph & Co. grew its stake in shares of Microchip Technology by 57.4% during the first quarter. Steph & Co. now owns 414 shares of the semiconductor company’s stock valued at $37,000 after buying an additional 151 shares during the last quarter. Finally, Pathway Financial Advisers LLC bought a new position in shares of Microchip Technology during the first quarter valued at about $39,000. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells 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 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.