Microchip Technology (NASDAQ:MCHP) Hits New 52-Week Low – Time to Sell?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) reached a new 52-week low during mid-day trading on Friday . The company traded as low as $49.51 and last traded at $49.62, with a volume of 637425 shares traded. The stock had previously closed at $50.79.

Analyst Upgrades and Downgrades

Several brokerages recently commented on MCHP. KeyCorp dropped their price objective on shares of Microchip Technology from $70.00 to $60.00 and set an “overweight” rating for the company in a research note on Friday, February 7th. StockNews.com downgraded Microchip Technology from a “hold” rating to a “sell” rating in a report on Monday, February 10th. Evercore ISI upped their target price on Microchip Technology from $65.00 to $71.00 and gave the stock an “outperform” rating in a report on Tuesday, March 4th. Mizuho lifted their price target on Microchip Technology from $58.00 to $68.00 and gave the company an “outperform” rating in a research note on Tuesday, March 4th. Finally, Needham & Company LLC boosted their price target on Microchip Technology from $60.00 to $66.00 and gave the stock a “buy” rating in a report on Tuesday, March 4th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $74.37.

Microchip Technology Stock Performance

The stock has a market capitalization of $26.75 billion, a price-to-earnings ratio of 88.46 and a beta of 1.52. The company has a 50 day simple moving average of $55.83 and a 200-day simple moving average of $64.16. 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 released its quarterly earnings data on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. As a group, equities research analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Monday, February 24th were paid a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.82 annualized dividend and a dividend yield of 3.66%. Microchip Technology’s dividend payout ratio is presently 325.00%.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,724 shares of the company’s stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total transaction of $226,717.12. Following the transaction, the chief financial officer now owns 33,272 shares in the company, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Mainstream Capital Management LLC bought a new stake in Microchip Technology during the 4th quarter worth approximately $26,000. Rakuten Securities Inc. boosted its position in shares of Microchip Technology by 309.5% during the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 359 shares during the last quarter. OFI Invest Asset Management bought a new stake in Microchip Technology during the fourth quarter worth $29,000. Financial Life Planners purchased a new stake in Microchip Technology in the 4th quarter valued at $32,000. Finally, Truvestments Capital LLC bought a new position in Microchip Technology during the 3rd quarter valued at $34,000. 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.