Microchip Technology (NASDAQ:MCHP) Stock Rating Upgraded by Bank of America

Bank of America upgraded shares of Microchip Technology (NASDAQ:MCHP) from an underperform rating to a neutral rating in a research note published on Friday morning, MarketBeat Ratings reports. The brokerage currently has $56.00 target price on the semiconductor company’s stock.

MCHP has been the topic of a number of other research reports. The Goldman Sachs Group lowered their price target on shares of Microchip Technology from $72.00 to $63.00 and set a “neutral” rating on the stock in a report on Friday, January 10th. Citigroup lowered their target price on Microchip Technology from $65.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday, April 11th. Truist Financial dropped their price target on Microchip Technology from $56.00 to $43.00 and set a “hold” rating on the stock in a research report on Monday, April 21st. TD Cowen boosted their price objective on Microchip Technology from $50.00 to $60.00 and gave the company a “hold” rating in a research note on Tuesday, March 4th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $66.00 target price on shares of Microchip Technology in a research report on Friday. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Microchip Technology currently has a consensus rating of “Moderate Buy” and an average target price of $67.42.

Microchip Technology Stock Up 12.6%

Shares of NASDAQ:MCHP opened at $55.33 on Friday. The business’s 50 day moving average is $47.06 and its 200 day moving average is $56.31. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $100.57. The stock has a market cap of $29.76 billion, a price-to-earnings ratio of 98.80 and a beta of 1.42. The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.01. The firm had revenue of $970.50 million for the quarter, compared to the consensus estimate of $962.86 million. Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. The business’s revenue for the quarter was down 26.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.57 EPS. On average, sell-side analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Thursday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 3.29%. Microchip Technology’s payout ratio is currently -18,200.00%.

Insider Buying and Selling

In related news, CFO James Eric Bjornholt sold 3,724 shares of the business’s stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total transaction of $226,717.12. Following the completion of the transaction, the chief financial officer now directly owns 33,272 shares in the company, valued at $2,025,599.36. The trade was a 10.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.10% of the stock is currently owned by company insiders.

Institutional Trading of Microchip Technology

Large investors have recently modified their holdings of the business. Norges Bank bought a new stake in Microchip Technology during the fourth quarter valued at approximately $452,627,000. Goldman Sachs Group Inc. raised its position in shares of Microchip Technology by 138.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company’s stock valued at $427,681,000 after buying an additional 5,136,154 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in shares of Microchip Technology by 273.2% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company’s stock worth $306,541,000 after acquiring an additional 3,912,895 shares during the last quarter. Van ECK Associates Corp grew its position in Microchip Technology by 39.3% in the fourth quarter. Van ECK Associates Corp now owns 11,093,007 shares of the semiconductor company’s stock worth $636,184,000 after acquiring an additional 3,131,807 shares in the last quarter. Finally, Franklin Resources Inc. increased its stake in Microchip Technology by 90.0% in the fourth quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company’s stock valued at $364,792,000 after acquiring an additional 3,013,162 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Company Profile

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.