Microchip Technology (NASDAQ:MCHP) Shares Gap Up – Time to Buy?

Microchip Technology Incorporated (NASDAQ:MCHP) gapped up prior to trading on Monday . The stock had previously closed at $56.39, but opened at $57.80. Microchip Technology shares last traded at $58.00, with a volume of 1,578,066 shares.

Analyst Ratings Changes

Several equities research analysts have weighed in on MCHP shares. StockNews.com upgraded Microchip Technology from a “sell” rating to a “hold” rating in a report on Friday, December 13th. KeyCorp dropped their price target on Microchip Technology from $90.00 to $70.00 and set an “overweight” rating for the company in a research note on Tuesday, January 14th. Bank of America lowered shares of Microchip Technology from a “neutral” rating to an “underperform” rating and decreased their price objective for the stock from $80.00 to $65.00 in a report on Monday, December 16th. Evercore ISI reiterated an “outperform” rating and set a $95.00 price target (down previously from $101.00) on shares of Microchip Technology in a research report on Wednesday, November 6th. Finally, TD Cowen cut their price objective on Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research report on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $84.00.

Microchip Technology Price Performance

The firm has a 50-day moving average of $60.12 and a 200-day moving average of $72.08. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.48 and a current ratio of 0.88. The firm has a market capitalization of $30.22 billion, a P/E ratio of 39.36 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.43 by $0.03. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The company had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. During the same period last year, the firm posted $1.54 earnings per share. Microchip Technology’s revenue was down 48.4% compared to the same quarter last year. As a group, analysts predict that Microchip Technology Incorporated will post 1.31 EPS for the current year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 6th. Stockholders of record on Friday, November 22nd were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 3.23%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, November 22nd. Microchip Technology’s payout ratio is presently 127.27%.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently modified their holdings of the company. Prospera Private Wealth LLC bought a new position in Microchip Technology in the third quarter worth approximately $29,000. Financial Life Planners bought a new position in Microchip Technology in the 4th quarter worth $32,000. Peterson Financial Group Inc. purchased a new position in Microchip Technology during the third quarter valued at $34,000. Truvestments Capital LLC bought a new stake in Microchip Technology during the third quarter valued at about $34,000. Finally, Wolff Wiese Magana LLC increased its position in Microchip Technology by 55.2% in the third quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock worth $49,000 after buying an additional 218 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

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.