Microchip Technology (NASDAQ:MCHP) Earns Outperform Rating from Analysts at Evercore ISI

Evercore ISI started coverage on shares of Microchip Technology (NASDAQ:MCHP) in a report released on Tuesday, Marketbeat.com reports. The brokerage issued an outperform rating and a $106.00 target price on the semiconductor company’s stock.

Several other brokerages have also recently commented on MCHP. Needham & Company LLC raised their price target on shares of Microchip Technology from $85.00 to $90.00 and gave the company a buy rating in a research report on Friday, February 2nd. Piper Sandler cut shares of Microchip Technology from an overweight rating to a neutral rating and set a $80.00 price target for the company. in a research report on Thursday, January 4th. The Goldman Sachs Group decreased their price target on shares of Microchip Technology from $87.00 to $77.00 and set a neutral rating for the company in a research report on Friday, February 2nd. Rosenblatt Securities reissued a buy rating and issued a $100.00 price target on shares of Microchip Technology in a research report on Tuesday, January 30th. Finally, TD Cowen raised their price target on shares of Microchip Technology from $75.00 to $80.00 and gave the company a market perform rating in a research report on Friday, February 2nd. Six research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. According to MarketBeat, Microchip Technology currently has a consensus rating of Moderate Buy and an average price target of $92.50.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $81.68 on Tuesday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98. The stock has a market capitalization of $44.14 billion, a P/E ratio of 19.08, a PEG ratio of 2.60 and a beta of 1.65. The company has a 50 day moving average price of $86.50 and a 200 day moving average price of $84.27. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $94.30.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, February 1st. The semiconductor company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.04. The firm had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.77 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The firm’s quarterly revenue was down 18.6% on a year-over-year basis. During the same quarter last year, the company posted $1.48 EPS. Equities research analysts forecast that Microchip Technology will post 4.64 EPS for the current year.

Microchip Technology Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 8th. Investors of record on Friday, February 23rd were paid a dividend of $0.45 per share. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.44. This represents a $1.80 annualized dividend and a yield of 2.20%. The ex-dividend date of this dividend was Thursday, February 22nd. Microchip Technology’s dividend payout ratio (DPR) is currently 42.06%.

Insider Buying and Selling

In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Karlton D. Johnson sold 370 shares of Microchip Technology stock in a transaction on Tuesday, February 6th. The stock was sold at an average price of $84.00, for a total transaction of $31,080.00. Following the sale, the director now owns 1,789 shares in the company, valued at $150,276. The disclosure for this sale can be found here. 2.07% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MCHP. Panagora Asset Management Inc. increased its stake in Microchip Technology by 31.8% in the first quarter. Panagora Asset Management Inc. now owns 21,731 shares of the semiconductor company’s stock valued at $1,633,000 after purchasing an additional 5,237 shares during the period. Cibc World Market Inc. boosted its holdings in shares of Microchip Technology by 292.9% in the first quarter. Cibc World Market Inc. now owns 44,324 shares of the semiconductor company’s stock valued at $3,331,000 after acquiring an additional 33,044 shares in the last quarter. Vontobel Holding Ltd. boosted its holdings in shares of Microchip Technology by 4.1% in the first quarter. Vontobel Holding Ltd. now owns 29,572 shares of the semiconductor company’s stock valued at $2,259,000 after acquiring an additional 1,159 shares in the last quarter. Sequoia Financial Advisors LLC boosted its holdings in shares of Microchip Technology by 34.1% in the first quarter. Sequoia Financial Advisors LLC now owns 4,455 shares of the semiconductor company’s stock valued at $335,000 after acquiring an additional 1,133 shares in the last quarter. Finally, Loomis Sayles & Co. L P boosted its holdings in shares of Microchip Technology by 1,272.4% in the first quarter. Loomis Sayles & Co. L P now owns 326,717 shares of the semiconductor company’s stock valued at $24,550,000 after acquiring an additional 302,910 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.