Microchip Technology (NASDAQ:MCHP) Shares Gap Down – Here’s Why

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $44.90, but opened at $41.37. Microchip Technology shares last traded at $39.92, with a volume of 3,830,634 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on MCHP shares. Bank of America downgraded Microchip Technology from a “neutral” rating to an “underperform” rating and lowered their price target for the company from $80.00 to $65.00 in a report on Monday, December 16th. Rosenblatt Securities reiterated a “buy” rating and set a $70.00 price target on shares of Microchip Technology in a research report on Tuesday, March 4th. Morgan Stanley decreased their price target on shares of Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 4th. B. Riley reaffirmed a “buy” rating and set a $75.00 price objective (down previously from $85.00) on shares of Microchip Technology in a research note on Friday, February 7th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $65.00 price target (down from $85.00) on shares of Microchip Technology in a research report on Friday, February 7th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $74.37.

Microchip Technology Stock Down 16.3 %

The stock has a market capitalization of $20.21 billion, a P/E ratio of 67.02 and a beta of 1.51. The company has a current ratio of 2.25, a quick ratio of 1.23 and a debt-to-equity ratio of 1.12. The stock’s 50 day simple moving average is $52.68 and its 200 day simple moving average is $61.56.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. As a group, research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were issued a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 4.84%. Microchip Technology’s dividend payout ratio (DPR) is 325.00%.

Insider Buying and Selling

In other news, CFO James Eric Bjornholt sold 3,724 shares of Microchip Technology stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total value of $226,717.12. Following the completion of the transaction, the chief financial officer now directly owns 33,272 shares of the company’s stock, valued at approximately $2,025,599.36. The trade was a 10.07 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Large investors have recently bought and sold shares of the business. Mainstream Capital Management LLC acquired a new stake in shares of Microchip Technology during the 4th quarter worth approximately $26,000. Rakuten Securities Inc. increased its position in Microchip Technology by 309.5% in the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock worth $27,000 after buying an additional 359 shares during the period. OFI Invest Asset Management acquired a new stake in Microchip Technology in the fourth quarter worth $29,000. Financial Life Planners bought a new stake in Microchip Technology in the fourth quarter valued at $32,000. Finally, Kohmann Bosshard Financial Services LLC acquired a new position in shares of Microchip Technology during the fourth quarter valued at $34,000. Institutional investors own 91.51% of the company’s stock.

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.