Microchip Technology (NASDAQ:MCHP) Price Target Cut to $85.00 by Analysts at Piper Sandler

Microchip Technology (NASDAQ:MCHP) had its target price reduced by Piper Sandler from $100.00 to $85.00 in a report released on Wednesday morning, Benzinga reports. Piper Sandler currently has an overweight rating on the semiconductor company’s stock.

A number of other equities analysts also recently issued reports on MCHP. KeyCorp decreased their price objective on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating for the company in a report on Wednesday. Mizuho set a $95.00 price objective on shares of Microchip Technology in a report on Friday, October 18th. Truist Financial downgraded Microchip Technology from a “buy” rating to a “hold” rating and cut their price target for the stock from $89.00 to $80.00 in a research note on Monday, September 23rd. B. Riley lowered their price objective on Microchip Technology from $110.00 to $103.00 and set a “buy” rating for the company in a research note on Friday, August 2nd. Finally, Citigroup reduced their price target on Microchip Technology from $104.00 to $92.00 and set a “buy” rating for the company in a report on Friday, August 2nd. Six research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $92.00.

Microchip Technology Trading Up 1.2 %

MCHP stock traded up $0.86 on Wednesday, reaching $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 debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94. The business has a fifty day simple moving average of $77.05 and a two-hundred day simple moving average of $85.12. The firm has a market cap of $40.03 billion, a PE ratio of 51.57 and a beta of 1.53. Microchip Technology has a 12-month low of $71.76 and a 12-month high of $100.57.

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

Microchip Technology Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 22nd will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a 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 126.57%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of the company’s 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 owns 33,257 shares of the company’s stock, valued at $2,710,445.50. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Peterson Financial Group Inc. purchased a new position in Microchip Technology during the third quarter valued at $34,000. Natixis Advisors LLC raised its stake in shares of Microchip Technology by 35.8% in the third quarter. Natixis Advisors LLC now owns 488,263 shares of the semiconductor company’s stock worth $39,203,000 after buying an additional 128,809 shares during the period. Empowered Funds LLC lifted its position in shares of Microchip Technology by 25.7% during the 3rd quarter. Empowered Funds LLC now owns 96,163 shares of the semiconductor company’s stock valued at $7,721,000 after buying an additional 19,663 shares in the last quarter. Empirical Finance LLC grew its stake in shares of Microchip Technology by 2.1% during the 3rd quarter. Empirical Finance LLC now owns 18,650 shares of the semiconductor company’s stock valued at $1,497,000 after acquiring an additional 384 shares during the period. Finally, CIBC Asset Management Inc increased its holdings in Microchip Technology by 63.7% in the 3rd quarter. CIBC Asset Management Inc now owns 260,683 shares of the semiconductor company’s stock worth $20,930,000 after acquiring an additional 101,453 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

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.