Zacks Investment Research Upgrades Microchip Technology (MCHP) to Buy

Zacks Investment Research upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a research note published on Friday morning. The firm currently has $84.00 price objective on the semiconductor company’s stock.

According to Zacks, “Microchip reported develops and manufacturers microcontrollers, memory and analog and interface products. The company is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. Additionally, the company expanded collaboration with Amazon Web services to support AWS offerings as well as develop secure cloud system. The company also completed the acquisition of Microsemi. Microchip is well poised to capitalize on Microsemi’s growth catalysts. Apart from a robust portfolio, the buyout is likely to expand Microchip’s total addressable markets. However, increasing lead time and significant exposure to Asian markets remain major headwinds.”

Several other brokerages have also issued reports on MCHP. Nomura decreased their price target on shares of Microchip Technology from $110.00 to $105.00 and set a buy rating for the company in a research note on Friday, August 10th. BidaskClub lowered shares of Microchip Technology from a strong-buy rating to a buy rating in a research note on Tuesday, June 26th. Raymond James lowered shares of Microchip Technology from an outperform rating to a market perform rating and set a $105.00 price target for the company. in a research note on Tuesday, September 25th. KeyCorp started coverage on shares of Microchip Technology in a research note on Tuesday, September 25th. They issued a sector weight rating for the company. Finally, Bank of America lowered shares of Microchip Technology from a buy rating to a neutral rating and decreased their price target for the stock from $115.00 to $95.00 in a research note on Monday, September 17th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of Buy and an average target price of $112.11.

Shares of NASDAQ MCHP opened at $69.28 on Friday. The company has a debt-to-equity ratio of 1.96, a current ratio of 1.32 and a quick ratio of 0.80. Microchip Technology has a 12 month low of $68.60 and a 12 month high of $104.20. The firm has a market capitalization of $18.59 billion, a price-to-earnings ratio of 13.35, a P/E/G ratio of 0.83 and a beta of 1.10.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, August 9th. The semiconductor company reported $1.61 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.48 by $0.13. The company had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. Microchip Technology had a net margin of 2.85% and a return on equity of 36.33%. Microchip Technology’s quarterly revenue was up 24.7% compared to the same quarter last year. During the same period last year, the business earned $1.31 EPS. Equities research analysts expect that Microchip Technology will post 6.51 EPS for the current year.

In related news, COO Ganesh Moorthy purchased 12,000 shares of the company’s stock in a transaction dated Tuesday, August 14th. The shares were purchased at an average price of $84.10 per share, with a total value of $1,009,200.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Stephen V. Drehobl sold 3,998 shares of the firm’s stock in a transaction dated Wednesday, August 22nd. The shares were sold at an average price of $84.33, for a total transaction of $337,151.34. Following the sale, the vice president now directly owns 16,931 shares in the company, valued at approximately $1,427,791.23. The disclosure for this sale can be found here. 2.13% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Townsend & Associates Inc boosted its holdings in shares of Microchip Technology by 6.1% during the 2nd quarter. Townsend & Associates Inc now owns 9,413 shares of the semiconductor company’s stock valued at $856,000 after acquiring an additional 539 shares during the last quarter. Capital Analysts LLC boosted its holdings in shares of Microchip Technology by 1.6% in the second quarter. Capital Analysts LLC now owns 34,565 shares of the semiconductor company’s stock worth $3,144,000 after buying an additional 543 shares during the last quarter. Gulf International Bank UK Ltd boosted its holdings in shares of Microchip Technology by 0.7% in the second quarter. Gulf International Bank UK Ltd now owns 73,979 shares of the semiconductor company’s stock worth $6,728,000 after buying an additional 550 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec boosted its holdings in shares of Microchip Technology by 1.3% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 46,500 shares of the semiconductor company’s stock worth $4,248,000 after buying an additional 600 shares during the last quarter. Finally, Stephens Inc. AR boosted its holdings in shares of Microchip Technology by 3.3% in the second quarter. Stephens Inc. AR now owns 18,796 shares of the semiconductor company’s stock worth $1,710,000 after buying an additional 600 shares during the last quarter.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.

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