Microchip Technology (NASDAQ:MCHP) Hits New 1-Year Low – Time to Sell?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) reached a new 52-week low on Friday . The stock traded as low as $54.81 and last traded at $54.98, with a volume of 493847 shares traded. The stock had previously closed at $56.38.

Wall Street Analyst Weigh In

MCHP has been the subject of several recent analyst reports. Needham & Company LLC reaffirmed a “buy” rating and set a $85.00 target price on shares of Microchip Technology in a research note on Tuesday, December 3rd. Mizuho set a $95.00 price objective on shares of Microchip Technology in a research report on Friday, October 18th. TD Cowen cut their target price on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research note on Wednesday, November 6th. Citigroup decreased their price target on shares of Microchip Technology from $92.00 to $82.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Finally, KeyCorp dropped their price objective on shares of Microchip Technology from $95.00 to $90.00 and set an “overweight” rating on the stock in a report on Tuesday, December 3rd. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $89.63.

Microchip Technology Stock Performance

The firm has a market cap of $29.55 billion, a PE ratio of 38.48 and a beta of 1.52. The company has a 50 day simple moving average of $63.23 and a 200-day simple moving average of $75.24. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03. The company had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The firm’s revenue was down 48.4% compared to the same quarter last year. During the same period in the prior year, the business posted $1.54 EPS. As a group, equities research analysts anticipate that Microchip Technology Incorporated will post 1.33 EPS for the current year.

Microchip Technology Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, December 6th. Investors of record on Friday, November 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.31%. The ex-dividend date was Friday, November 22nd. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s payout ratio is currently 127.27%.

Institutional Investors Weigh In On Microchip Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Prospera Private Wealth LLC purchased a new stake in Microchip Technology in the third quarter worth $29,000. Peterson Financial Group Inc. bought a new stake in shares of Microchip Technology during the 3rd quarter valued at about $34,000. Truvestments Capital LLC bought a new stake in shares of Microchip Technology during the 3rd quarter valued at about $34,000. Wolff Wiese Magana LLC increased its position in shares of Microchip Technology by 55.2% during the third quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock valued at $49,000 after buying an additional 218 shares during the period. Finally, Hobbs Group Advisors LLC raised its stake in Microchip Technology by 390.6% in the third quarter. Hobbs Group Advisors LLC now owns 628 shares of the semiconductor company’s stock worth $50,000 after buying an additional 500 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.