Piper Sandler Issues Pessimistic Forecast for Microchip Technology (NASDAQ:MCHP) Stock Price

Microchip Technology (NASDAQ:MCHP) had its price target trimmed by Piper Sandler from $100.00 to $85.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an overweight rating on the semiconductor company’s stock.

Other research analysts also recently issued research reports about the stock. JPMorgan Chase & Co. dropped their price objective on shares of Microchip Technology from $110.00 to $100.00 and set an “overweight” rating for the company in a report on Friday, August 2nd. StockNews.com raised Microchip Technology from a “sell” rating to a “hold” rating in a report on Thursday, October 17th. B. Riley reduced their price target on shares of Microchip Technology from $110.00 to $103.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. Susquehanna dropped their price objective on shares of Microchip Technology from $105.00 to $95.00 and set a “positive” rating for the company in a research note on Monday, October 21st. Finally, Truist Financial lowered Microchip Technology from a “buy” rating to a “hold” rating and dropped their price target for the stock from $89.00 to $80.00 in a research report on Monday, September 23rd. Six research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $92.00.

Microchip Technology Price Performance

Shares of Microchip Technology stock traded up $0.86 during trading hours on Wednesday, hitting $74.61. The company’s stock had a trading volume of 1,371,204 shares, compared to its average volume of 5,939,167. The company has a market cap of $40.03 billion, a PE ratio of 51.57 and a beta of 1.53. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94. The business has a 50 day moving average price of $77.05 and a two-hundred day moving average price of $85.12. Microchip Technology has a 12-month low of $71.76 and a 12-month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a return on equity of 28.33% and a net margin of 20.80%. The company had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the previous year, the firm earned $1.54 EPS. The firm’s revenue was down 48.4% compared to the same quarter last year. Analysts expect that Microchip Technology will post 1.73 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be given a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.44%. The ex-dividend date of this dividend is Friday, November 22nd. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio is presently 126.57%.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the completion of the sale, the chief financial officer now directly owns 33,257 shares of the company’s stock, valued at approximately $2,710,445.50. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Large investors have recently made changes to their positions in the business. Norden Group LLC increased its stake in Microchip Technology by 23.9% during the 1st quarter. Norden Group LLC now owns 3,418 shares of the semiconductor company’s stock valued at $307,000 after purchasing an additional 660 shares in the last quarter. Nordea Investment Management AB grew its holdings in Microchip Technology by 7.0% during the first quarter. Nordea Investment Management AB now owns 39,455 shares of the semiconductor company’s stock worth $3,539,000 after acquiring an additional 2,576 shares during the period. Rehmann Capital Advisory Group lifted its holdings in Microchip Technology by 8.2% in the first quarter. Rehmann Capital Advisory Group now owns 3,237 shares of the semiconductor company’s stock valued at $290,000 after acquiring an additional 246 shares during the period. Larson Financial Group LLC acquired a new stake in shares of Microchip Technology during the 1st quarter worth approximately $85,000. Finally, Advisory Services Network LLC lifted its stake in shares of Microchip Technology by 4.7% in the 1st quarter. Advisory Services Network LLC now owns 33,927 shares of the semiconductor company’s stock valued at $3,044,000 after purchasing an additional 1,531 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

About Microchip Technology

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.