Microchip Technology (MCHP) Downgraded by Zacks Investment Research to Hold

Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.

According to Zacks, “Microchip develops and manufacturers microcontrollers, memory and analog and interface products for embedded control systems. Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand 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. However, increasing lead time due to manufacturing constraints can impact gross margins. Additionally, given its extensive geographical foothold the company is continuously adversely impacted by exchange rate volatility while competition remains headwind.”

A number of other equities analysts have also recently issued reports on MCHP. Needham & Company LLC restated a “buy” rating and set a $120.00 price objective on shares of Microchip Technology in a report on Friday, September 8th. Morgan Stanley restated an “overweight” rating and set a $94.00 price objective on shares of Microchip Technology in a report on Wednesday, September 20th. Stifel Nicolaus restated a “buy” rating and set a $94.00 price objective on shares of Microchip Technology in a report on Thursday, September 28th. ValuEngine cut Microchip Technology from a “buy” rating to a “hold” rating in a report on Saturday, September 30th. Finally, Argus started coverage on Microchip Technology in a report on Friday, October 6th. They set a “buy” rating and a $106.00 price objective for the company. Six equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $101.18.

Shares of Microchip Technology (MCHP) traded up $2.53 during trading on Wednesday, hitting $90.41. The stock had a trading volume of 1,633,000 shares, compared to its average volume of 1,268,500. The stock has a market cap of $21,340.00, a PE ratio of 36.16, a price-to-earnings-growth ratio of 1.41 and a beta of 1.00. The company has a current ratio of 3.33, a quick ratio of 2.71 and a debt-to-equity ratio of 0.85. Microchip Technology has a 12-month low of $62.21 and a 12-month high of $95.92.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Monday, November 6th. The semiconductor company reported $1.41 EPS for the quarter, topping the Zacks’ consensus estimate of $1.27 by $0.14. Microchip Technology had a return on equity of 35.48% and a net margin of 16.23%. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same quarter in the previous year, the business earned $0.94 EPS. The company’s quarterly revenue was up 16.2% on a year-over-year basis. equities analysts expect that Microchip Technology will post 5.12 EPS for the current year.

In other news, CFO James Eric Bjornholt sold 1,801 shares of the business’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value of $165,079.66. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Stephen V. Drehobl sold 2,852 shares of the business’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $91.66, for a total value of $261,414.32. Following the completion of the transaction, the vice president now directly owns 15,767 shares of the company’s stock, valued at $1,445,203.22. The disclosure for this sale can be found here. 2.13% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fox Run Management L.L.C. raised its position in shares of Microchip Technology by 248.8% in the 3rd quarter. Fox Run Management L.L.C. now owns 15,000 shares of the semiconductor company’s stock worth $1,347,000 after acquiring an additional 10,700 shares in the last quarter. 361 Capital LLC increased its position in Microchip Technology by 35.3% during the 2nd quarter. 361 Capital LLC now owns 48,830 shares of the semiconductor company’s stock valued at $3,769,000 after buying an additional 12,730 shares in the last quarter. Norinchukin Bank The increased its position in Microchip Technology by 13.2% during the 2nd quarter. Norinchukin Bank The now owns 15,920 shares of the semiconductor company’s stock valued at $1,229,000 after buying an additional 1,857 shares in the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in Microchip Technology by 9.3% during the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 130,249 shares of the semiconductor company’s stock valued at $11,694,000 after buying an additional 11,068 shares in the last quarter. Finally, HPM Partners LLC increased its position in Microchip Technology by 76.3% during the 2nd quarter. HPM Partners LLC now owns 17,185 shares of the semiconductor company’s stock valued at $623,000 after buying an additional 7,437 shares in the last quarter.

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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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