Microchip Technology (NASDAQ:MCHP) Sets New 52-Week Low After Analyst Downgrade

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during trading on Wednesday after KeyCorp lowered their price target on the stock from $95.00 to $90.00. KeyCorp currently has an overweight rating on the stock. Microchip Technology traded as low as $62.58 and last traded at $62.89, with a volume of 5761368 shares traded. The stock had previously closed at $65.39.

A number of other equities analysts have also recently issued reports on MCHP. Truist Financial cut Microchip Technology from a “buy” rating to a “hold” rating and cut their target price for the stock from $89.00 to $80.00 in a report on Monday, September 23rd. Stifel Nicolaus dropped their price objective on Microchip Technology from $90.00 to $87.00 and set a “buy” rating on the stock in a research note on Tuesday. Evercore ISI restated an “outperform” rating and set a $95.00 price objective (down from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. Needham & Company LLC restated a “buy” rating and set a $85.00 price objective on shares of Microchip Technology in a research note on Tuesday. Finally, StockNews.com cut Microchip Technology from a “hold” rating to a “sell” rating in a research note on Thursday, November 7th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $90.95.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MCHP. Healthcare of Ontario Pension Plan Trust Fund boosted its position in shares of Microchip Technology by 2,390.5% during the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,291,290 shares of the semiconductor company’s stock valued at $209,653,000 after acquiring an additional 2,199,290 shares during the last quarter. Van ECK Associates Corp boosted its position in shares of Microchip Technology by 25.1% during the 3rd quarter. Van ECK Associates Corp now owns 7,961,200 shares of the semiconductor company’s stock valued at $599,239,000 after acquiring an additional 1,597,263 shares during the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of Microchip Technology by 78.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,189,390 shares of the semiconductor company’s stock valued at $200,329,000 after acquiring an additional 961,801 shares during the last quarter. Franklin Resources Inc. lifted its position in Microchip Technology by 30.2% in the 3rd quarter. Franklin Resources Inc. now owns 3,347,643 shares of the semiconductor company’s stock worth $264,430,000 after buying an additional 776,408 shares during the last quarter. Finally, National Bank of Canada FI lifted its position in Microchip Technology by 234.1% in the 2nd quarter. National Bank of Canada FI now owns 899,561 shares of the semiconductor company’s stock worth $82,391,000 after buying an additional 630,285 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology Stock Down 4.6 %

The stock has a 50-day moving average of $73.33 and a two-hundred day moving average of $81.88. The company has a market cap of $33.51 billion, a P/E ratio of 45.73 and a beta of 1.50. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.48 and a current ratio of 0.88.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. The company had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. Microchip Technology’s quarterly revenue was down 48.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.54 EPS. On average, research analysts anticipate that Microchip Technology Incorporated will post 1.38 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 22nd will be given a $0.455 dividend. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date is Friday, November 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.92%. Microchip Technology’s payout ratio is presently 127.27%.

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.