Microchip Technology (NASDAQ:MCHP) Shares Gap Up – Here’s What Happened

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $56.39, but opened at $57.80. Microchip Technology shares last traded at $58.00, with a volume of 1,578,066 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on MCHP shares. Bank of America cut shares of Microchip Technology from a “neutral” rating to an “underperform” rating and lowered their target price for the company from $80.00 to $65.00 in a research note on Monday, December 16th. Jefferies Financial Group lowered their price target on Microchip Technology from $100.00 to $90.00 and set a “buy” rating on the stock in a report on Wednesday, November 6th. Piper Sandler cut their price objective on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a report on Wednesday, November 6th. KeyCorp lowered their target price on shares of Microchip Technology from $90.00 to $70.00 and set an “overweight” rating on the stock in a report on Tuesday, January 14th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $90.00 target price on shares of Microchip Technology in a research note on Wednesday, November 6th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and a consensus target price of $84.00.

Microchip Technology Stock Down 1.7 %

The stock has a market cap of $30.22 billion, a P/E ratio of 39.36 and a beta of 1.52. The company’s fifty day moving average price is $60.12 and its 200-day moving average price is $72.08. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.48 and a current ratio of 0.88.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. The business had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.15 billion. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The business’s revenue was down 48.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.54 earnings per share. Equities analysts forecast that Microchip Technology Incorporated will post 1.31 EPS for the current year.

Microchip Technology Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 6th. Shareholders of record on Friday, November 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 3.23%. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Friday, November 22nd. Microchip Technology’s payout ratio is 127.27%.

Institutional Trading of Microchip Technology

Several institutional investors and hedge funds have recently modified their holdings of the stock. Prospera Private Wealth LLC purchased a new position in Microchip Technology in the third quarter worth $29,000. Financial Life Planners acquired a new position in Microchip Technology during the 4th quarter valued at about $32,000. Peterson Financial Group Inc. acquired a new stake in Microchip Technology in the third quarter worth about $34,000. Truvestments Capital LLC acquired a new position in shares of Microchip Technology during the third quarter valued at about $34,000. Finally, Wolff Wiese Magana LLC boosted its stake in Microchip Technology by 55.2% in the 3rd quarter. Wolff Wiese Magana LLC now owns 613 shares of the semiconductor company’s stock worth $49,000 after purchasing an additional 218 shares in the last quarter. 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.