Microchip Technology (NASDAQ:MCHP) Price Target Cut to $82.00 by Analysts at Citigroup

Microchip Technology (NASDAQ:MCHP) had its target price reduced by Citigroup from $92.00 to $82.00 in a research report released on Wednesday morning, Benzinga reports. Citigroup currently has a buy rating on the semiconductor company’s stock.

Other equities research analysts have also recently issued research reports about the stock. Bank of America cut shares of Microchip Technology from a “buy” rating to a “neutral” rating and reduced their price target for the stock from $110.00 to $90.00 in a research report on Friday, August 2nd. Truist Financial cut shares of Microchip Technology from a “buy” rating to a “hold” rating and reduced their price target for the stock from $89.00 to $80.00 in a research report on Monday, September 23rd. Mizuho set a $95.00 price target on shares of Microchip Technology in a research report on Friday, October 18th. Morgan Stanley cut shares of Microchip Technology from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $102.00 to $100.00 in a research report on Thursday, July 11th. Finally, StockNews.com upgraded shares of Microchip Technology from a “sell” rating to a “hold” rating in a research report on Thursday, October 17th. Six research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and an average price target of $92.00.

Microchip Technology Price Performance

Shares of Microchip Technology stock traded up $0.87 on Wednesday, hitting $74.62. 874,410 shares of the company traded hands, compared to its average volume of 5,936,867. The stock has a market capitalization of $40.03 billion, a P/E ratio of 51.57 and a beta of 1.53. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.08 and a current ratio of 1.94. Microchip Technology has a 52 week low of $71.76 and a 52 week high of $100.57. The business has a 50-day simple moving average of $77.05 and a 200 day simple moving average of $85.12.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.03. The firm had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The company’s revenue for the quarter was down 48.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.54 earnings per share. Research analysts expect that Microchip Technology will post 1.73 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be paid a dividend of $0.455 per share. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.44%. The ex-dividend date of this dividend is Friday, November 22nd. Microchip Technology’s payout ratio is currently 126.57%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $81.50, for a total value of $175,551.00. Following the completion of the sale, the chief financial officer now directly owns 33,257 shares in the company, valued at $2,710,445.50. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 2.10% of the company’s stock.

Institutional Trading of Microchip Technology

Institutional investors and hedge funds have recently made changes to their positions in the company. Peterson Financial Group Inc. bought a new stake in shares of Microchip Technology in the third quarter valued at about $34,000. Pathway Financial Advisers LLC bought a new stake in shares of Microchip Technology in the first quarter valued at about $39,000. Versant Capital Management Inc raised its holdings in shares of Microchip Technology by 148.8% in the second quarter. Versant Capital Management Inc now owns 530 shares of the semiconductor company’s stock valued at $48,000 after acquiring an additional 317 shares in the last quarter. Wolff Wiese Magana LLC raised its holdings in shares of Microchip Technology by 55.2% in the third quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock valued at $49,000 after acquiring an additional 218 shares in the last quarter. Finally, CarsonAllaria Wealth Management Ltd. bought a new stake in shares of Microchip Technology in the first quarter valued at about $54,000. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.