Microchip Technology (NASDAQ:MCHP) Hits New 12-Month Low – Here’s What Happened

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week low during trading on Thursday . The stock traded as low as $54.41 and last traded at $54.56, with a volume of 1141461 shares traded. The stock had previously closed at $56.03.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MCHP. KeyCorp reduced their price target on shares of Microchip Technology from $90.00 to $70.00 and set an “overweight” rating for the company in a research report on Tuesday, January 14th. Piper Sandler dropped their price objective on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 6th. Mizuho lowered their target price on Microchip Technology from $85.00 to $72.00 and set an “outperform” rating on the stock in a research note on Friday, January 10th. Citigroup lowered their target price on Microchip Technology from $92.00 to $82.00 and set a “buy” rating on the stock in a research note on Wednesday, November 6th. Finally, The Goldman Sachs Group lowered their target price on Microchip Technology from $72.00 to $63.00 and set a “neutral” rating on the stock in a research note on Friday, January 10th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, Microchip Technology has an average rating of “Moderate Buy” and a consensus price target of $84.00.

Microchip Technology Stock Performance

The stock has a market capitalization of $29.54 billion, a PE ratio of 38.45 and a beta of 1.52. The business has a 50 day moving average price of $59.77 and a 200 day moving average price of $71.72. 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 announced its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.03. Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%. The firm had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the prior year, the company posted $1.54 earnings per share. The company’s quarterly revenue was down 48.4% on a year-over-year basis. As a group, equities research analysts expect that Microchip Technology Incorporated will post 1.31 earnings per share for the current year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 6th. Stockholders of record on Friday, November 22nd were issued a $0.455 dividend. 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. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.31%. Microchip Technology’s payout ratio is 127.27%.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently modified their holdings of the business. Pallas Capital Advisors LLC acquired a new position in Microchip Technology during the 4th quarter valued at about $5,917,000. Quadrature Capital Ltd purchased a new stake in shares of Microchip Technology in the third quarter worth about $3,312,000. Benjamin Edwards Inc. boosted its position in Microchip Technology by 5,185.4% during the third quarter. Benjamin Edwards Inc. now owns 9,408 shares of the semiconductor company’s stock worth $755,000 after purchasing an additional 9,230 shares in the last quarter. Empowered Funds LLC boosted its position in Microchip Technology by 25.7% during the third quarter. Empowered Funds LLC now owns 96,163 shares of the semiconductor company’s stock worth $7,721,000 after purchasing an additional 19,663 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in Microchip Technology by 9,901.6% during the fourth quarter. Assenagon Asset Management S.A. now owns 2,857,654 shares of the semiconductor company’s stock worth $163,886,000 after purchasing an additional 2,829,082 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

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.