Microchip Technology (MCHP) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a report released on Friday, November 10th. The brokerage currently has $102.00 price objective on the semiconductor company’s stock.

According to Zacks, “Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. This was evident from the second-quarter fiscal 2018. Both earnings and revenues increased on a year-over-year basis. For the first time in its history, the company hit the $1 billion revenue milestone. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. The stock has outperformed the industry on a year-to-date basis. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. Additionally, increasing capital expenditure is expected to save cost in the long haul.”

A number of other analysts have also commented on MCHP. B. Riley reaffirmed a buy rating and set a $120.00 price objective on shares of Microchip Technology in a research note on Friday, August 4th. Mizuho reaffirmed a neutral rating and set a $84.00 price objective (up from $80.00) on shares of Microchip Technology in a research note on Wednesday, August 9th. BidaskClub raised shares of Microchip Technology from a hold rating to a buy rating in a research note on Wednesday, August 9th. Jefferies Group reaffirmed a buy rating and set a $94.00 price objective (up from $92.00) on shares of Microchip Technology in a research note on Friday, August 4th. Finally, ValuEngine downgraded Microchip Technology from a buy rating to a hold rating in a report on Saturday, September 30th. Five research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company’s stock. The company has an average rating of Buy and an average price target of $99.41.

Shares of Microchip Technology (NASDAQ:MCHP) traded down $4.00 during midday trading on Friday, reaching $86.58. 4,389,700 shares of the company’s stock were exchanged, compared to its average volume of 2,528,264. Microchip Technology has a 52 week low of $60.77 and a 52 week high of $95.92. The company has a quick ratio of 2.71, a current ratio of 3.33 and a debt-to-equity ratio of 0.85. The firm has a market cap of $21,080.00, a P/E ratio of 19.27, a price-to-earnings-growth ratio of 1.45 and a beta of 1.05.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Monday, November 6th. The semiconductor company reported $1.41 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.27 by $0.14. Microchip Technology had a net margin of 16.23% and a return on equity of 35.48%. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1 billion. During the same period in the prior year, the company earned $0.94 EPS. Microchip Technology’s revenue was up 16.2% on a year-over-year basis. sell-side analysts anticipate that Microchip Technology will post 5.12 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 5th. Investors of record on Tuesday, November 21st will be given a $0.3625 dividend. This is a boost from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.45 annualized dividend and a yield of 1.67%. The ex-dividend date of this dividend is Monday, November 20th. Microchip Technology’s dividend payout ratio (DPR) is 58.00%.

In other news, VP Stephen V. Drehobl sold 2,852 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value of $261,414.32. Following the completion of the sale, the vice president now directly owns 15,767 shares in the company, valued at $1,445,203.22. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO James Eric Bjornholt sold 1,801 shares of Microchip Technology stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value of $165,079.66. The disclosure for this sale can be found here. 2.13% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. Grove Bank & Trust boosted its holdings in Microchip Technology by 15.8% during the second quarter. Grove Bank & Trust now owns 1,390 shares of the semiconductor company’s stock worth $107,000 after buying an additional 190 shares during the last quarter. Zions Bancorporation lifted its holdings in shares of Microchip Technology by 215.5% during the 3rd quarter. Zions Bancorporation now owns 1,224 shares of the semiconductor company’s stock valued at $110,000 after purchasing an additional 836 shares in the last quarter. Amica Retiree Medical Trust bought a new position in shares of Microchip Technology during the 3rd quarter valued at about $121,000. Trust Co. of Vermont lifted its holdings in shares of Microchip Technology by 9.2% during the 2nd quarter. Trust Co. of Vermont now owns 1,615 shares of the semiconductor company’s stock valued at $125,000 after purchasing an additional 136 shares in the last quarter. Finally, Smithfield Trust Co. lifted its holdings in shares of Microchip Technology by 0.4% during the 2nd quarter. Smithfield Trust Co. now owns 1,626 shares of the semiconductor company’s stock valued at $126,000 after purchasing an additional 7 shares in the last quarter.

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About Microchip Technology

Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.

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