Zacks Investment Research Lowers Microchip Technology (MCHP) to Hold

Microchip Technology (NASDAQ:MCHP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

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. Notably, shares of the company has outperformed the industry over the past one year. 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 analysts have also recently commented on MCHP. Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 price target on shares of Microchip Technology in a research report on Tuesday, September 19th. Morgan Stanley reaffirmed an “overweight” rating and set a $94.00 price target on shares of Microchip Technology in a research report on Wednesday, September 20th. Stifel Nicolaus reaffirmed a “buy” rating and set a $94.00 price target on shares of Microchip Technology in a research report on Thursday, September 28th. ValuEngine cut shares of Microchip Technology from a “buy” rating to a “hold” rating in a research report on Saturday, September 30th. Finally, Argus started coverage on shares of Microchip Technology in a research report on Friday, October 6th. They set a “buy” rating and a $106.00 price target on the stock. Six analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. Microchip Technology presently has a consensus rating of “Buy” and a consensus target price of $101.24.

Shares of Microchip Technology (NASDAQ MCHP) traded up $0.36 on Tuesday, reaching $92.62. 1,084,300 shares of the company’s stock were exchanged, compared to its average volume of 1,674,900. The company has a quick ratio of 2.71, a current ratio of 3.33 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $21,580.00, a PE ratio of 37.05, a P/E/G ratio of 1.48 and a beta of 1.00. Microchip Technology has a twelve month low of $63.61 and a twelve month high of $95.92.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Monday, November 6th. The semiconductor company reported $1.41 EPS for the quarter, beating the Zacks’ consensus estimate of $1.27 by $0.14. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1 billion. Microchip Technology had a net margin of 16.23% and a return on equity of 35.48%. The business’s quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.94 earnings per share. research analysts forecast that Microchip Technology will post 5.12 EPS for the current fiscal year.

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

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Commonwealth Bank of Australia raised its holdings in shares of Microchip Technology by 1.4% in the 2nd quarter. Commonwealth Bank of Australia now owns 2,124 shares of the semiconductor company’s stock worth $163,000 after acquiring an additional 29 shares during the last quarter. Keel Point LLC increased its stake in Microchip Technology by 3.3% in the 2nd quarter. Keel Point LLC now owns 3,694 shares of the semiconductor company’s stock valued at $285,000 after buying an additional 119 shares during the last quarter. QS Investors LLC increased its stake in Microchip Technology by 6.5% in the 2nd quarter. QS Investors LLC now owns 2,999 shares of the semiconductor company’s stock valued at $231,000 after buying an additional 182 shares during the last quarter. Veritable L.P. increased its stake in Microchip Technology by 15.6% in the 2nd quarter. Veritable L.P. now owns 3,883 shares of the semiconductor company’s stock valued at $300,000 after buying an additional 524 shares during the last quarter. Finally, Flinton Capital Management LLC increased its stake in Microchip Technology by 4.7% in the 2nd quarter. Flinton Capital Management LLC now owns 12,000 shares of the semiconductor company’s stock valued at $926,000 after buying an additional 544 shares during the last quarter.

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About Microchip Technology

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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