Microchip Technology Inc. (NASDAQ:MCHP)‘s stock had its “buy” rating reaffirmed by equities researchers at Jefferies Group LLC in a research note issued to investors on Wednesday. They currently have a $87.00 price target on the stock, up from their previous price target of $72.00. Jefferies Group LLC’s target price points to a potential upside of 17.89% from the stock’s current price.
A number of other brokerages have also recently issued reports on MCHP. B. Riley restated a “buy” rating and set a $78.00 target price on shares of Microchip Technology in a report on Tuesday, November 8th. Zacks Investment Research upgraded Microchip Technology from a “hold” rating to a “strong-buy” rating and set a $72.00 target price on the stock in a report on Friday, November 11th. Mizuho restated a “neutral” rating and set a $67.00 target price on shares of Microchip Technology in a report on Tuesday, November 8th. Susquehanna Bancshares Inc started coverage on Microchip Technology in a report on Tuesday, December 20th. They set a “positive” rating and a $75.00 target price on the stock. Finally, Needham & Company LLC restated a “buy” rating and set a $75.00 target price (up previously from $70.00) on shares of Microchip Technology in a report on Tuesday, November 8th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $72.07.
Shares of Microchip Technology (NASDAQ:MCHP) traded up 6.00% during midday trading on Wednesday, hitting $73.80. The company had a trading volume of 11,809,394 shares. The firm’s 50-day moving average is $66.58 and its 200-day moving average is $62.60. Microchip Technology has a 12-month low of $39.01 and a 12-month high of $76.50. The firm has a market capitalization of $15.94 billion, a P/E ratio of 320.87 and a beta of 1.08.
Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Tuesday, February 7th. The company reported $1.05 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.90 by $0.15. Microchip Technology had a return on equity of 27.29% and a net margin of 1.77%. The firm had revenue of $881.20 million for the quarter, compared to analysts’ expectations of $849.14 million. During the same quarter last year, the business earned $0.64 earnings per share. The company’s revenue was up 59.6% compared to the same quarter last year. On average, analysts predict that Microchip Technology will post $3.62 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 7th. Stockholders of record on Tuesday, February 21st will be paid a dividend of $0.361 per share. This is an increase from Microchip Technology’s previous quarterly dividend of $0.36. This represents a $1.44 annualized dividend and a dividend yield of 1.96%. The ex-dividend date of this dividend is Thursday, February 16th. Microchip Technology’s payout ratio is currently 720.00%.
In related news, CEO Steve Sanghi sold 49,901 shares of the business’s stock in a transaction on Wednesday, November 23rd. The stock was sold at an average price of $63.80, for a total value of $3,183,683.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Stephen V. Drehobl sold 3,494 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 $227,669.04. Following the completion of the sale, the vice president now owns 13,710 shares of the company’s stock, valued at $893,343.60. The disclosure for this sale can be found here. Insiders have sold a total of 87,023 shares of company stock valued at $5,608,975 over the last quarter. 2.50% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Fenimore Asset Management Inc. raised its stake 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 during the last quarter. Sumitomo Mitsui Trust Holdings Inc. increased its position in shares of Microchip Technology by 7.4% in the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 628,906 shares of the company’s stock valued at $39,080,000 after buying an additional 43,578 shares during the period. Bank of Montreal Can increased its position in shares of 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 during the period. Public Employees Retirement Association of Colorado increased its position in shares of Microchip Technology by 18.1% in the third quarter. Public Employees Retirement Association of Colorado now owns 903,086 shares of the company’s stock valued at $56,118,000 after buying an additional 138,572 shares during the period. Finally, Doheny Asset Management CA increased its position in shares of 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 during the period.
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.