Microchip Technology Incorporated (MCHP) Downgraded by Zacks Investment Research to Hold
Microchip Technology Incorporated (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
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. Notably, estimates have been going up ahead of the company's Q2 earnings release.”
MCHP has been the subject of several other reports. Jefferies Group LLC reissued a “buy” rating and issued a $106.00 price objective on shares of Microchip Technology in a research report on Thursday. Morgan Stanley reissued an “overweight” rating and issued a $94.00 price objective on shares of Microchip Technology in a research report on Wednesday, September 20th. SunTrust Banks, Inc. reissued a “hold” rating and issued a $90.00 price objective on shares of Microchip Technology in a research report on Thursday, October 12th. Argus initiated coverage on Microchip Technology in a research report on Friday, October 6th. They issued a “buy” rating and a $106.00 price objective for the company. Finally, Needham & Company LLC reissued a “buy” rating and issued a $120.00 price objective (up from $100.00) on shares of Microchip Technology in a research report on Friday, August 4th. Seven analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. Microchip Technology has an average rating of “Buy” and an average price target of $91.59.
Microchip Technology (NASDAQ:MCHP) remained flat at $92.73 on Monday. 648,156 shares of the stock were exchanged. Microchip Technology has a 12-month low of $58.79 and a 12-month high of $94.66. The stock has a 50-day moving average price of $89.90 and a 200-day moving average price of $82.42. The stock has a market capitalization of $21.58 billion, a PE ratio of 49.96 and a beta of 1.07.
Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, August 3rd. The semiconductor company reported $1.31 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.14 by $0.17. Microchip Technology had a return on equity of 34.33% and a net margin of 12.53%. The firm had revenue of $972.10 million during the quarter, compared to analyst estimates of $944.87 million. During the same period last year, the company posted $0.84 EPS. The business’s quarterly revenue was up 21.6% on a year-over-year basis. On average, equities analysts forecast that Microchip Technology will post $5.28 earnings per share for the current year.
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In other Microchip Technology news, VP Stephen V. Drehobl sold 3,076 shares of Microchip Technology stock in a transaction dated Tuesday, August 22nd. The stock was sold at an average price of $81.89, for a total transaction of $251,893.64. Following the completion of the transaction, the vice president now owns 14,263 shares in the company, valued at approximately $1,167,997.07. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 2,453 shares of Microchip Technology stock in a transaction dated Tuesday, August 22nd. The shares were sold at an average price of $81.89, for a total value of $200,876.17. The disclosure for this sale can be found here. Insiders have sold a total of 6,829 shares of company stock valued at $561,905 in the last quarter. Company insiders own 2.13% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in MCHP. Municipal Employees Retirement System of Michigan boosted its stake in Microchip Technology by 1.8% during the 1st quarter. Municipal Employees Retirement System of Michigan now owns 6,970 shares of the semiconductor company’s stock valued at $514,000 after purchasing an additional 120 shares during the last quarter. Teachers Advisors LLC boosted its stake in Microchip Technology by 10.2% during the 1st quarter. Teachers Advisors LLC now owns 829,448 shares of the semiconductor company’s stock valued at $61,197,000 after purchasing an additional 76,645 shares during the last quarter. Global X Management Co. LLC boosted its stake in Microchip Technology by 29.0% during the 1st quarter. Global X Management Co. LLC now owns 2,570 shares of the semiconductor company’s stock valued at $190,000 after purchasing an additional 578 shares during the last quarter. Miles Capital Inc. acquired a new position in Microchip Technology during the 1st quarter valued at about $393,000. Finally, King Luther Capital Management Corp acquired a new position in Microchip Technology during the 1st quarter valued at about $201,000.
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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