Microchip Technology (NASDAQ:MCHP) Hits New 52-Week Low – Here’s Why

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $43.33 and last traded at $42.88, with a volume of 3527827 shares traded. The stock had previously closed at $48.93.

Wall Street Analyst Weigh In

MCHP has been the topic of a number of analyst reports. StockNews.com downgraded Microchip Technology from a “hold” rating to a “sell” rating in a research note on Monday, February 10th. Morgan Stanley decreased their price objective on shares of Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 4th. KeyCorp decreased their price target on Microchip Technology from $70.00 to $60.00 and set an “overweight” rating on the stock in a research note on Friday, February 7th. The Goldman Sachs Group decreased their target price on Microchip Technology from $72.00 to $63.00 and set a “neutral” rating on the stock in a research report on Friday, January 10th. Finally, Needham & Company LLC lifted their price target on Microchip Technology from $60.00 to $66.00 and gave the stock a “buy” rating in a research note on Tuesday, March 4th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and a consensus price target of $74.37.

Microchip Technology Stock Down 16.6 %

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 firm has a 50 day moving average price of $55.07 and a two-hundred day moving average price of $63.30. The company has a market capitalization of $21.95 billion, a price-to-earnings ratio of 72.88 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. As a group, sell-side analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Investors of record on Monday, February 24th were given a $0.455 dividend. The ex-dividend date was Monday, February 24th. This represents a $1.82 annualized dividend and a yield of 4.46%. Microchip Technology’s dividend payout ratio is presently 325.00%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 3,724 shares of the firm’s stock in a transaction 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 completion of the sale, the chief financial officer now directly owns 33,272 shares of the company’s stock, valued at $2,025,599.36. This trade represents a 10.07 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 2.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors have recently bought and sold shares of MCHP. Pallas Capital Advisors LLC acquired a new stake in Microchip Technology during the 4th quarter valued at $5,917,000. Consolidated Planning Corp purchased a new stake in shares of Microchip Technology in the fourth quarter worth approximately $308,000. Quadrature Capital Ltd acquired a new stake in shares of Microchip Technology during the third quarter worth approximately $3,312,000. one8zero8 LLC purchased a new position in Microchip Technology during the fourth quarter valued at approximately $384,000. Finally, Symphony Financial Ltd. Co. acquired a new position in Microchip Technology in the 4th quarter valued at approximately $520,000. Hedge funds and other 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.