Microchip Technology (MCHP) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a report issued on Tuesday morning.
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. Notably, Microchip stock has reported a wider loss in its value compared with the industry's decline in the past year.”
Other equities analysts also recently issued research reports about the company. Argus boosted their target price on Microchip Technology to $115.00 and gave the stock an average rating in a research note on Monday, June 25th. They noted that the move was a valuation call. Rosenblatt Securities restated a buy rating and issued a $125.00 target price on shares of Microchip Technology in a research note on Sunday, August 12th. Nomura started coverage on Microchip Technology in a research note on Wednesday, July 18th. They issued a buy rating and a $110.00 target price on the stock. BidaskClub downgraded Microchip Technology from a strong-buy rating to a buy rating in a research note on Tuesday, June 26th. Finally, Cfra restated a buy rating and issued a $110.00 target price on shares of Microchip Technology in a research note on Wednesday, September 19th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. Microchip Technology has an average rating of Buy and a consensus price target of $111.05.
Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, August 9th. The semiconductor company reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.13. Microchip Technology had a return on equity of 36.33% and a net margin of 2.85%. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the previous year, the business earned $1.31 EPS. The company’s revenue was up 24.7% compared to the same quarter last year. On average, analysts forecast that Microchip Technology will post 6.51 EPS for the current fiscal year.
In related news, CFO James Eric Bjornholt sold 1,887 shares of Microchip Technology stock in a transaction that occurred on Wednesday, August 22nd. The shares were sold at an average price of $84.33, for a total value of $159,130.71. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Stephen V. Drehobl sold 3,998 shares of Microchip Technology stock in a transaction that occurred on Wednesday, August 22nd. The stock was sold at an average price of $84.33, for a total transaction of $337,151.34. Following the completion of 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. Insiders own 2.13% of the company’s stock.
Several large investors have recently bought and sold shares of MCHP. Artisan Partners Limited Partnership bought a new stake in shares of Microchip Technology in the 2nd quarter worth approximately $96,187,000. OppenheimerFunds Inc. raised its holdings in shares of Microchip Technology by 114.5% in the 2nd quarter. OppenheimerFunds Inc. now owns 1,753,557 shares of the semiconductor company’s stock worth $159,486,000 after purchasing an additional 935,884 shares during the period. Millennium Management LLC raised its holdings in Microchip Technology by 1,900.4% during the 2nd quarter. Millennium Management LLC now owns 705,152 shares of the semiconductor company’s stock valued at $64,134,000 after acquiring an additional 669,901 shares during the period. Janus Henderson Group PLC raised its holdings in Microchip Technology by 4.7% during the 2nd quarter. Janus Henderson Group PLC now owns 12,919,605 shares of the semiconductor company’s stock valued at $1,175,042,000 after acquiring an additional 582,965 shares during the period. Finally, Platinum Investment Management Ltd. raised its holdings in Microchip Technology by 138.7% during the 1st quarter. Platinum Investment Management Ltd. now owns 651,200 shares of the semiconductor company’s stock valued at $59,493,000 after acquiring an additional 378,400 shares during the period.
Microchip Technology Company Profile
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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