Microchip Technology (NASDAQ:MCHP) Sets New 52-Week Low After Analyst Downgrade

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low on Wednesday after KeyCorp lowered their price target on the stock from $95.00 to $90.00. KeyCorp currently has an overweight rating on the stock. Microchip Technology traded as low as $62.58 and last traded at $62.89, with a volume of 5761368 shares trading hands. The stock had previously closed at $65.39.

Several other analysts also recently weighed in on MCHP. Needham & Company LLC reiterated a “buy” rating and issued a $85.00 price objective on shares of Microchip Technology in a research report on Tuesday. TD Cowen reduced their target price on Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research note on Wednesday, November 6th. StockNews.com cut Microchip Technology from a “hold” rating to a “sell” rating in a research note on Thursday, November 7th. Jefferies Financial Group reduced their target price on Microchip Technology from $100.00 to $90.00 and set a “buy” rating on the stock in a research note on Wednesday, November 6th. Finally, Susquehanna reduced their target price on Microchip Technology from $95.00 to $90.00 and set a “positive” rating on the stock in a research note on Wednesday, November 6th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $90.95.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds have recently added to or reduced their stakes in the stock. Franklin Resources Inc. boosted its holdings in Microchip Technology by 30.2% in the third quarter. Franklin Resources Inc. now owns 3,347,643 shares of the semiconductor company’s stock worth $264,430,000 after acquiring an additional 776,408 shares in the last quarter. Synovus Financial Corp lifted its holdings in shares of Microchip Technology by 9.6% during the third quarter. Synovus Financial Corp now owns 70,644 shares of the semiconductor company’s stock valued at $5,672,000 after purchasing an additional 6,191 shares in the last quarter. Tidal Investments LLC lifted its holdings in shares of Microchip Technology by 3.2% during the third quarter. Tidal Investments LLC now owns 36,267 shares of the semiconductor company’s stock valued at $2,912,000 after purchasing an additional 1,108 shares in the last quarter. Wilmington Savings Fund Society FSB lifted its holdings in shares of Microchip Technology by 16.6% during the third quarter. Wilmington Savings Fund Society FSB now owns 60,394 shares of the semiconductor company’s stock valued at $4,849,000 after purchasing an additional 8,592 shares in the last quarter. Finally, Arvest Bank Trust Division bought a new position in shares of Microchip Technology during the third quarter valued at $223,000. 91.51% of the stock is owned by institutional investors.

Microchip Technology Stock Performance

The stock has a market capitalization of $33.51 billion, a P/E ratio of 45.73 and a beta of 1.50. The company has a quick ratio of 0.48, a current ratio of 0.88 and a debt-to-equity ratio of 0.71. The business has a fifty day moving average price of $73.33 and a 200-day moving average price of $81.88.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The firm had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the prior year, the company posted $1.54 earnings per share. The company’s quarterly revenue was down 48.4% on a year-over-year basis. On average, sell-side analysts expect that Microchip Technology Incorporated will post 1.38 EPS for the current year.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 22nd will be given a $0.455 dividend. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.92%. Microchip Technology’s dividend payout ratio is presently 127.27%.

Microchip Technology Company Profile

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.