Zacks Investment Research Lowers Microchip Technology Incorporated (MCHP) to Hold
Zacks Investment Research downgraded shares of Microchip Technology Incorporated (NASDAQ:MCHP) from a buy rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “Microchip is one of the better-positioned companies in the semiconductor industry based on its product strength. The stock has outperformed the industry on a year-to-date basis. The company is benefiting from the addition of Atmel’s product portfolio, which it acquired in Apr 2016. Microchip reaffirmed its guidance for the second quarter and expects robust demand for its products to drive growth. We believe the company’s initiatives to bridge the gap between lead time, inventory and backlog will benefit earnings and revenues in the near to middle term. Additionally, expanding product portfolio driven by new launches will continue to increase customer base. Moreover, acquisitions like that of Atmel are likely to expand its geographical presence, augment customer base, extend product portfolio and supplement operational excellence.”
MCHP has been the subject of several other reports. Mizuho restated a neutral rating and issued a $84.00 price target (up from $80.00) on shares of Microchip Technology in a research note on Wednesday, August 9th. Morgan Stanley restated an overweight rating and issued a $94.00 price target on shares of Microchip Technology in a research note on Wednesday, September 20th. ValuEngine downgraded Microchip Technology from a buy rating to a hold rating in a research note on Saturday, September 30th. BidaskClub downgraded Microchip Technology from a strong-buy rating to a buy rating in a research note on Tuesday, July 25th. Finally, B. Riley restated a buy rating and issued a $115.00 price target on shares of Microchip Technology in a research note on Sunday, June 11th. Six equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Microchip Technology currently has an average rating of Buy and an average target price of $90.94.
Shares of Microchip Technology (MCHP) traded up 0.27% on Wednesday, hitting $91.55. The company had a trading volume of 1,349,550 shares. Microchip Technology has a 12-month low of $57.52 and a 12-month high of $91.83. The company has a market capitalization of $21.31 billion, a P/E ratio of 49.33 and a beta of 1.07. The firm has a 50-day moving average price of $87.44 and a 200 day moving average price of $81.08.
Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, August 3rd. The semiconductor company reported $1.31 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.14 by $0.17. The business had revenue of $972.10 million during the quarter, compared to the consensus estimate of $944.87 million. Microchip Technology had a return on equity of 34.33% and a net margin of 12.53%. The firm’s quarterly revenue was up 21.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.84 EPS. Equities analysts expect that Microchip Technology will post $5.27 EPS for the current year.
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In other news, CFO James Eric Bjornholt sold 2,453 shares of the company’s stock in a transaction on Tuesday, August 22nd. The stock was sold at an average price of $81.89, for a total transaction of $200,876.17. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Stephen V. Drehobl sold 3,076 shares of the company’s stock in a transaction on Tuesday, August 22nd. The shares were sold at an average price of $81.89, for a total value of $251,893.64. Following the sale, the vice president now owns 14,263 shares of the company’s stock, valued at $1,167,997.07. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 6,829 shares of company stock valued at $561,905. Corporate insiders own 2.13% of the company’s stock.
Several institutional investors have recently bought and sold shares of MCHP. Janus Henderson Group PLC raised its holdings in shares of Microchip Technology by 2,959.9% during the 2nd quarter. Janus Henderson Group PLC now owns 8,073,264 shares of the semiconductor company’s stock worth $623,093,000 after buying an additional 7,809,422 shares in the last quarter. Principal Financial Group Inc. raised its holdings in shares of Microchip Technology by 66.5% during the 2nd quarter. Principal Financial Group Inc. now owns 6,276,677 shares of the semiconductor company’s stock worth $484,434,000 after buying an additional 2,507,707 shares in the last quarter. Fred Alger Management Inc. raised its holdings in shares of Microchip Technology by 80.9% during the 2nd quarter. Fred Alger Management Inc. now owns 3,349,037 shares of the semiconductor company’s stock worth $258,479,000 after buying an additional 1,497,699 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Microchip Technology by 4.6% during the 2nd quarter. Vanguard Group Inc. now owns 23,622,558 shares of the semiconductor company’s stock worth $1,823,190,000 after buying an additional 1,042,622 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in shares of Microchip Technology by 75.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,403,141 shares of the semiconductor company’s stock worth $185,475,000 after buying an additional 1,033,992 shares in the last quarter. 98.68% of the stock is owned by institutional investors.
Microchip Technology Company Profile
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.
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