Microchip Technology (NASDAQ:MCHP) Shares Gap Up – Here’s What Happened

Microchip Technology Incorporated (NASDAQ:MCHP)’s share price 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 trading hands.

Analyst Ratings Changes

A number of research analysts recently commented on MCHP shares. Piper Sandler decreased their price objective on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a report on Wednesday, November 6th. Bank of America lowered shares of Microchip Technology from a “neutral” rating to an “underperform” rating and reduced their price objective for the company from $80.00 to $65.00 in a report on Monday, December 16th. Susquehanna dropped their price target on shares of Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a research report on Wednesday, November 6th. Needham & Company LLC reaffirmed a “buy” rating and set a $85.00 price objective on shares of Microchip Technology in a research report on Tuesday, December 3rd. Finally, TD Cowen decreased their price target 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. One analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $84.00.

Microchip Technology Price Performance

The company has a 50-day simple moving average of $60.28 and a 200-day simple moving average of $72.33. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48. The stock has a market cap of $31.21 billion, a PE ratio of 40.60 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 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 business had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the previous year, the business earned $1.54 earnings per share. The business’s revenue for the quarter was down 48.4% on a year-over-year basis. Sell-side analysts anticipate that Microchip Technology Incorporated will post 1.31 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 6th. Investors of record on Friday, November 22nd were given a dividend of $0.455 per share. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, November 22nd. This represents a $1.82 annualized dividend and a yield of 3.13%. Microchip Technology’s dividend payout ratio is 127.27%.

Institutional Trading of Microchip Technology

Institutional investors have recently made changes to their positions in the stock. Stratos Wealth Partners LTD. grew its stake in Microchip Technology by 7.4% during the fourth quarter. Stratos Wealth Partners LTD. now owns 4,680 shares of the semiconductor company’s stock worth $268,000 after buying an additional 321 shares during the period. Retirement Systems of Alabama boosted its position in Microchip Technology by 87.3% during the 4th quarter. Retirement Systems of Alabama now owns 460,767 shares of the semiconductor company’s stock worth $26,425,000 after purchasing an additional 214,720 shares during the period. Rockline Wealth Management LLC increased its holdings in Microchip Technology by 5.0% in the 4th quarter. Rockline Wealth Management LLC now owns 54,769 shares of the semiconductor company’s stock valued at $3,141,000 after purchasing an additional 2,606 shares in the last quarter. Financial Life Planners purchased a new position in Microchip Technology in the fourth quarter valued at about $32,000. Finally, Stock Yards Bank & Trust Co. raised its position in Microchip Technology by 14.0% in the fourth quarter. Stock Yards Bank & Trust Co. now owns 13,124 shares of the semiconductor company’s stock valued at $753,000 after purchasing an additional 1,607 shares during the period. 91.51% of the stock is 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.