Microchip Technology (NASDAQ:MCHP) Reaches New 52-Week Low – Here’s What Happened

Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during trading on Thursday . The stock traded as low as $43.33 and last traded at $42.88, with a volume of 3527827 shares changing hands. The stock had previously closed at $48.93.

Analysts Set New Price Targets

MCHP has been the topic of a number of research reports. Needham & Company LLC increased their price objective on Microchip Technology from $60.00 to $66.00 and gave the stock a “buy” rating in a report on Tuesday, March 4th. Piper Sandler restated an “overweight” rating and set a $65.00 price target (down previously from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. The Goldman Sachs Group reduced their price objective on shares of Microchip Technology from $72.00 to $63.00 and set a “neutral” rating for the company in a research note on Friday, January 10th. Raymond James reissued a “strong-buy” rating and set a $60.00 target price (down from $95.00) on shares of Microchip Technology in a research report on Friday, February 7th. Finally, Bank of America cut Microchip Technology from a “neutral” rating to an “underperform” rating and reduced their price target for the stock from $80.00 to $65.00 in a research report on Monday, December 16th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $74.37.

Microchip Technology Stock Performance

The stock has a market capitalization of $21.95 billion, a P/E ratio of 72.88 and a beta of 1.52. The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12. The firm has a 50-day moving average of $55.07 and a 200 day moving average of $63.30.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. Research analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were paid a $0.455 dividend. The ex-dividend date was Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 4.46%. Microchip Technology’s dividend payout ratio (DPR) is presently 325.00%.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,724 shares of Microchip Technology stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total transaction of $226,717.12. Following the completion of the sale, the chief financial officer now owns 33,272 shares in the company, valued at $2,025,599.36. The trade was a 10.07 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of MCHP. Mainstream Capital Management LLC bought a new position in shares of Microchip Technology during the fourth quarter worth $26,000. Rakuten Securities Inc. lifted its holdings in Microchip Technology by 309.5% during the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 359 shares in the last quarter. OFI Invest Asset Management bought a new position in Microchip Technology during the fourth quarter worth about $29,000. Financial Life Planners acquired a new position in Microchip Technology in the fourth quarter valued at about $32,000. Finally, Kohmann Bosshard Financial Services LLC bought a new stake in shares of Microchip Technology in the fourth quarter worth about $34,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.