Microchip Technology Incorporated (NASDAQ: MCHP – Get Rated) — Investment analysts at Jefferies Financial Group downgraded their fiscal 2024 per-share price forecast for Microchip Technology stock in a research note published Thursday, Oct. 13 Earnings expectations. Jefferies Financial Group analyst M. Lipacis now expects the semiconductor company to earn $3.75 a share this year, down from a previous forecast of $5.13. The current consensus estimate for Microchip Technology’s full-year earnings is $5.42 per share. Jefferies Financial Group also issued a forecast for Microchip Technology’s fiscal 2025 earnings per share of $4.82.
Microchip Technology (NASDAQ: MCHP – Get Rating) last released its quarterly earnings results on Tuesday, Aug. 2. The semiconductor company reported earnings per share (EPS) of $1.30 for the quarter, beating analysts’ consensus estimate of $1.27 by $0.03. Microchip’s net profit margin was 21.34% and return on equity was 44.90%. The company’s revenue for the quarter was $1.96 billion, compared with the consensus estimate of $1.96 billion. In the same period last year, the company reported earnings of $0.88 per share.
Several other analysts have also weighed the stock recently. Cowen raised its price target on Microchip Technology stock to $72.00 from $60.00 in a research note on Wednesday, Aug. 3, and gave the company an “outperform” rating. StockNews.com begins coverage of Microchip Technology stock in a research report on Wednesday, October 12. They have a “buy” rating on the stock. Goldman Sachs cut its price target on Microchip Technology stock to $61.00 from $76.00 in a research note Friday, July 15. Cowen raised its price target on Microchip Technology stock to $72.00 from $60.00 in a research note on Wednesday, Aug. 3, and gave the company an “outperform” rating. Finally, Citigroup lowered its price target on Microchip Technology stock to $62.00 from $72.00 and rated the stock as “neutral” in a research note on Tuesday, October 11. Four equity research analysts have a hold rating on the stock, seventeen have a buy rating and one has a strong buy rating. Microchip currently has an average rating of “Moderate Buy” and an average price target of $88.82, according to MarketBeat.
Microchip Technology trading fell 3.6%
Microchip shares opened Monday at $57.31. The company’s 50-day moving average is $65.90 and its 200-day moving average is $65.66. The company’s gearing ratio is 1.27, its quick ratio is 1.17, and its current ratio is 1.78. Microchip Technology has a 1-year low of $54.33 and a 1-year high of $90.00. The company has a market cap of $31.66 billion, a price-to-earnings ratio of 21.07, a PEG ratio of 0.75, and a beta of 1.56.
Microchip Technology Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Friday, September 2. Shareholders of record on Friday, August 19 received a dividend of $0.301 per share. The ex-dividend date is Thursday, August 18. This translates to an annualized dividend of $1.20 and a dividend yield of 2.10%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.28. Microchip’s current payout ratio is 44.12%.
Insider Activities
In other news, Director Matthew W. Chapman sold 1,000 shares of the company in a transaction that took place on Tuesday, Aug. 23. Shares sold at an average price of $68.21 for a total volume of $68,210.00. Following the sale, the director now owns 37,682 shares of the company, valued at $2,570,289.22. The transaction was disclosed in a filing with the U.S. Securities and Exchange Commission, which can be accessed via this hyperlink. In other Microchip Technology news, Director Matthew W. Chapman sold 1,000 shares of the company in a transaction that took place on Tuesday, August 23rd. Shares sold at an average price of $68.21 for a total value of $68,210.00. Following the transaction, the directors now own 37,682 shares of the company, valued at approximately $2,570,289.22. The transaction was disclosed in an SEC filing, which can be accessed at this link. In addition, Chief Financial Officer James Eric Bjornholt sold 2,379 shares of the company in a transaction that took place on Tuesday, August 23. The shares sold at an average price of $68.21 for a total transaction value of $162,271.59. Following the transaction, the CFO now owns 35,333 shares of the company, worth approximately $2,410,063.93. Disclosures for this sale can be found here. 2.00% of the shares are held by company insiders.
Institutional inflows and outflows
Several large investors have overweight or underweight the stock recently. EdgeRock Capital LLC acquired a new stake in Microchip Technology for approximately $181,000 in the third quarter. Buttonwood Financial Advisors Inc. saw its position in Microchip Technology increase 6.0% in the third quarter. Buttonwood Financial Advisors Inc. now owns 39,193 shares of the semiconductor company valued at $2,330,000 after buying an additional 2,225 shares in the previous quarter. Diversified Trust Co acquired a new stake in Microchip Technology for approximately $207,000 in the third quarter. Gradient Investments LLC’s position in Microchip Technology rose 5.4% in the third quarter. Gradient Investments LLC now owns 220,357 shares of the semiconductor company’s stock valued at $13,448,000 after buying an additional 11,261 shares in the previous quarter. Finally, UMB Bank’s share of Microchip Technology increased 0.9% in the third quarter. UMB Bank now owns 25,153 shares in the semiconductor company worth $1,535,000 after buying an additional 212 shares in the previous quarter. Institutional investors and hedge funds own 89.81% of the company.
Microchip Technology Company Profile
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Microchip Technology Incorporated develops, manufactures and markets smart, connected and secure embedded control solutions in the Americas, Europe and Asia. The company offers general-purpose 8-, 16-, and 32-bit microcontrollers; 32-bit embedded microprocessor markets; and applications for automotive, industrial, computing, communications, lighting, power, motor control, human-machine interface, security, wired connectivity and dedicated microcontrollers for wireless connectivity applications.
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