Microchip Technology (NASDAQ:MCHP) Stock Price Down 4.8% on Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP) was down 4.8% on Friday after Citigroup lowered their price target on the stock from $65.00 to $50.00. Citigroup currently has a buy rating on the stock. Microchip Technology traded as low as $35.47 and last traded at $36.94. Approximately 3,740,013 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 7,905,428 shares. The stock had previously closed at $38.81.

MCHP has been the subject of several other research reports. Morgan Stanley lowered their price objective on Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating for the company in a research report on Tuesday, February 4th. Evercore ISI increased their target price on Microchip Technology from $65.00 to $71.00 and gave the company an “outperform” rating in a research note on Tuesday, March 4th. Rosenblatt Securities reaffirmed a “buy” rating and set a $70.00 price target on shares of Microchip Technology in a report on Tuesday, March 4th. Bank of America lowered Microchip Technology from a “neutral” rating to an “underperform” rating and cut their price objective for the stock from $80.00 to $65.00 in a report on Monday, December 16th. Finally, The Goldman Sachs Group cut their target price on shares of Microchip Technology from $72.00 to $63.00 and set a “neutral” rating for the company in a research report on Friday, January 10th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $72.68.

Insider Activity

In related news, CFO James Eric Bjornholt sold 3,724 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total transaction of $226,717.12. Following the transaction, the chief financial officer now directly owns 33,272 shares in the company, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of large investors have recently bought and sold shares of the business. Godsey & Gibb Inc. raised its stake in shares of Microchip Technology by 6.8% during the first quarter. Godsey & Gibb Inc. now owns 274,906 shares of the semiconductor company’s stock valued at $13,308,000 after acquiring an additional 17,572 shares in the last quarter. Reinhart Partners LLC. boosted its stake in Microchip Technology by 35.8% in the first quarter. Reinhart Partners LLC. now owns 135,822 shares of the semiconductor company’s stock valued at $6,575,000 after acquiring an additional 35,797 shares in the last quarter. SeaCrest Wealth Management LLC grew its stake in Microchip Technology by 21.6% during the 1st quarter. SeaCrest Wealth Management LLC now owns 4,435 shares of the semiconductor company’s stock worth $215,000 after buying an additional 788 shares during the last quarter. E. Ohman J or Asset Management AB grew its stake in shares of Microchip Technology by 3.8% during the first quarter. E. Ohman J or Asset Management AB now owns 453,133 shares of the semiconductor company’s stock worth $21,936,000 after acquiring an additional 16,533 shares during the last quarter. Finally, Vest Financial LLC increased its stake in Microchip Technology by 66.3% during the 1st quarter. Vest Financial LLC now owns 20,090 shares of the semiconductor company’s stock valued at $973,000 after purchasing an additional 8,009 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Price Performance

The company has a market cap of $20.82 billion, a PE ratio of 69.13 and a beta of 1.51. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25. The stock has a 50 day moving average of $52.13 and a 200-day moving average of $61.03.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share (EPS) 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%. Equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Monday, February 24th were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 4.70%. The ex-dividend date of this dividend was Monday, February 24th. Microchip Technology’s payout ratio is currently 325.00%.

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.