Microchip Technology (NASDAQ:MCHP) Stock Rating Lowered by Truist Financial

Truist Financial cut shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a report published on Monday morning, Marketbeat Ratings reports. Truist Financial currently has $80.00 price target on the semiconductor company’s stock, down from their prior price target of $89.00.

Several other research analysts have also weighed in on MCHP. Needham & Company LLC lowered their price target on Microchip Technology from $100.00 to $96.00 and set a buy rating on the stock in a research report on Monday, August 5th. JPMorgan Chase & Co. dropped their price target on shares of Microchip Technology from $110.00 to $100.00 and set an overweight rating on the stock in a research report on Friday, August 2nd. Morgan Stanley downgraded shares of Microchip Technology from an overweight rating to an equal weight rating and decreased their price objective for the company from $102.00 to $100.00 in a research report on Thursday, July 11th. Piper Sandler raised shares of Microchip Technology from a neutral rating to an overweight rating and upped their target price for the company from $90.00 to $100.00 in a report on Friday, August 16th. Finally, B. Riley cut their target price on shares of Microchip Technology from $110.00 to $103.00 and set a buy rating for the company in a research note on Friday, August 2nd. One analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of Moderate Buy and a consensus price target of $99.47.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $80.31 on Monday. The firm has a market cap of $43.09 billion, a PE ratio of 22.63 and a beta of 1.53. Microchip Technology has a 12 month low of $68.75 and a 12 month high of $100.57. The company’s fifty day simple moving average is $80.19 and its 200-day simple moving average is $87.47. The company has a quick ratio of 1.08, a current ratio of 1.94 and a debt-to-equity ratio of 0.96.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.01. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 28.33%. The company’s quarterly revenue was down 45.8% on a year-over-year basis. During the same period in the prior year, the business posted $1.56 EPS. Equities research analysts expect that Microchip Technology will post 1.74 EPS for the current fiscal year.

Microchip Technology Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Stockholders of record on Thursday, August 22nd were issued a dividend of $0.454 per share. The ex-dividend date of this dividend was Thursday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.26%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio (DPR) is currently 52.45%.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology stock in a transaction dated Friday, August 23rd. The shares were 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 owns 33,257 shares in the company, valued at approximately $2,710,445.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.07% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Gilbert & Cook Inc. increased its position in shares of Microchip Technology by 8.5% in the fourth quarter. Gilbert & Cook Inc. now owns 5,354 shares of the semiconductor company’s stock worth $483,000 after purchasing an additional 421 shares during the period. D.A. Davidson & CO. increased its holdings in Microchip Technology by 82.6% in the 4th quarter. D.A. Davidson & CO. now owns 11,284 shares of the semiconductor company’s stock valued at $1,018,000 after buying an additional 5,103 shares during the period. Cambridge Investment Research Advisors Inc. increased its holdings in Microchip Technology by 5.4% in the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 41,269 shares of the semiconductor company’s stock valued at $3,722,000 after buying an additional 2,107 shares during the period. SageView Advisory Group LLC acquired a new position in shares of Microchip Technology in the 4th quarter valued at approximately $245,000. Finally, Orion Portfolio Solutions LLC lifted its holdings in shares of Microchip Technology by 8.1% during the 4th quarter. Orion Portfolio Solutions LLC now owns 26,275 shares of the semiconductor company’s stock worth $2,250,000 after acquiring an additional 1,977 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

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.