According to Zacks, “Microchip is one of the better-positioned companies in the semiconductor industry based on its product strength. The company's expanding product portfolio enables it to continuously outperform the broader industry. In addition, accretive acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence. We note that the company has outperformed the broader market in the past one-year. Moreover, estimates have been stable lately ahead of the company's Q3 earnings release. The company has mixed record of earnings surprises in recent quarters. However, high integration costs continue to be a drag on profitability. The semiconductor industry is also intensely competitive and is characterized by price erosion and rapid technological change.”
Several other research firms also recently commented on MCHP. B. Riley reaffirmed a buy rating and issued a $78.00 price target on shares of Microchip Technology in a research note on Tuesday, November 8th. Mizuho reaffirmed a neutral rating and issued a $67.00 price target on shares of Microchip Technology in a research note on Tuesday, November 8th. Susquehanna started coverage on shares of Microchip Technology in a research note on Tuesday, December 20th. They issued a positive rating and a $75.00 price target on the stock. Bank of America Corporation raised shares of Microchip Technology from a neutral rating to a buy rating and set a $75.00 price target on the stock in a research note on Tuesday, November 8th. Finally, Needham & Company LLC reissued a buy rating and set a $75.00 target price (up previously from $70.00) on shares of Microchip Technology in a research report on Tuesday, November 8th. Five investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $66.60.
Shares of Microchip Technology (NASDAQ:MCHP) traded up 2.228% on Tuesday, reaching $66.295. 2,457,104 shares of the company were exchanged. Microchip Technology has a 52 week low of $39.01 and a 52 week high of $66.81. The firm’s 50 day moving average price is $64.64 and its 200 day moving average price is $60.02. The stock has a market capitalization of $14.32 billion, a price-to-earnings ratio of 288.239 and a beta of 1.05.
Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Monday, November 7th. The company reported $0.94 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.87 by $0.07. The company had revenue of $873.80 million for the quarter, compared to the consensus estimate of $860.96 million. Microchip Technology had a net margin of 1.77% and a return on equity of 27.29%. The firm’s revenue was up 56.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.66 EPS. Equities research analysts anticipate that Microchip Technology will post $3.62 EPS for the current year.
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In related news, CFO James Eric Bjornholt sold 2,043 shares of the business’s stock in a transaction on Tuesday, November 22nd. The shares were sold at an average price of $65.16, for a total value of $133,121.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Steve Sanghi sold 49,901 shares of the business’s stock in a transaction on Wednesday, November 23rd. The shares were sold at an average price of $63.80, for a total transaction of $3,183,683.80. The disclosure for this sale can be found here. Company insiders own 2.50% of the company’s stock.
Several institutional investors have recently bought and sold shares of the stock. Fenimore Asset Management Inc. boosted its position in Microchip Technology by 0.9% in the third quarter. Fenimore Asset Management Inc. now owns 901,115 shares of the company’s stock valued at $55,995,000 after buying an additional 7,850 shares in the last quarter. RNC Capital Management LLC boosted its position in Microchip Technology by 1.0% in the second quarter. RNC Capital Management LLC now owns 372,870 shares of the company’s stock valued at $18,927,000 after buying an additional 3,760 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its position in Microchip Technology by 4.3% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 585,328 shares of the company’s stock valued at $29,711,000 after buying an additional 24,099 shares in the last quarter. Doheny Asset Management CA boosted its position in Microchip Technology by 1.7% in the second quarter. Doheny Asset Management CA now owns 118,670 shares of the company’s stock valued at $6,024,000 after buying an additional 1,950 shares in the last quarter. Finally, Bank of Montreal Can boosted its position in Microchip Technology by 28.1% in the third quarter. Bank of Montreal Can now owns 635,583 shares of the company’s stock valued at $39,495,000 after buying an additional 139,569 shares in the last quarter. Hedge funds and other institutional investors own 99.45% of the company’s stock.
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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