Microchip Technology (NASDAQ:MCHP) Shares Cross Above 50 Day Moving Average – Should You Sell?

Microchip Technology Incorporated (NASDAQ:MCHP)’s share price crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $75.19 and traded as high as $76.57. Microchip Technology shares last traded at $75.90, with a volume of 7,944,856 shares.

Analysts Set New Price Targets

A number of research analysts have commented on MCHP shares. Rosenblatt Securities reissued a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a research report on Friday, August 7th. Citigroup lowered their price target on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Truist Financial dropped their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, B. Riley Financial cut their price objective on shares of Microchip Technology from $108.00 to $98.00 and set a “buy” rating on the stock in a report on Thursday, October 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $97.71.

Microchip Technology Stock Up 2.5%

The business has a 50 day moving average of $75.19 and a two-hundred day moving average of $79.39. The stock has a market capitalization of $41.21 billion, a PE ratio of 113.29, a PEG ratio of 0.51 and a beta of 1.77. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. The firm’s quarterly revenue was up 38.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Analysts predict that Microchip Technology Incorporated will post 3.20 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were given a $0.4550 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. Microchip Technology’s payout ratio is presently 271.64%.

Insider Activity at Microchip Technology

In related news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. The trade was a 12.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company’s stock valued at $2,631,273,000 after purchasing an additional 821,147 shares during the last quarter. Van ECK Associates Corp grew its stake in Microchip Technology by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company’s stock worth $750,102,000 after buying an additional 1,272,838 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Microchip Technology during the 2nd quarter worth $537,423,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Microchip Technology by 23.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company’s stock worth $461,520,000 after buying an additional 962,362 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in Microchip Technology during the 2nd quarter valued at about $312,597,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

About Microchip Technology

Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.