Microchip Technology Incorporated [MCHP] fell -5.28% so far this year. What now?

Microchip Technology Incorporated [NASDAQ: MCHP] gained 0.70% or 0.69 points to close at $99.19 with a heavy trading volume of 2237671 shares. The company report on August 4, 2020 that Microchip Technology Declares Quarterly Cash Dividend of 36.80 Cents Per Share.

(NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected and secure embedded control solutions, today announced that its Board of Directors has declared a quarterly cash dividend on its common stock of 36.80 cents per share. The dividend is payable on September 4, 2020 to stockholders of record on August 21, 2020. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 64 times since its inception.

“Microchip’s financial performance in the June 2020 quarter was strong given the backdrop of the COVID-19 pandemic driving very uncertain economic conditions,” said Steve Sanghi, Chief Executive Officer. “Our Board is pleased to declare an increase in our quarterly dividend to a record 36.8 cents per share, which continues to reflect confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning value to our stockholders.”.

It opened the trading session at $98.01, the shares rose to $99.19 and dropped to $97.51, the range by which the price of stock traded the whole day. The daily chart for MCHP points out that the company has recorded -8.56% loss over the past six months. However, it is still -86.62% lower than its most recent low trading price.

If we look at the average trading volume of 3.05M shares, MCHP reached to a volume of 2237671 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Microchip Technology Incorporated [MCHP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MCHP shares is $119.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MCHP stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Cowen have made an estimate for Microchip Technology Incorporated shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on August 05, 2020. While these analysts kept the previous recommendation, Loop Capital raised their target price to Buy. The new note on the price target was released on June 19, 2020, representing the official price target for Microchip Technology Incorporated stock. Previously, the target price had yet another raise from $81 to $109, while Morgan Stanley kept a Equal-Weight rating on MCHP stock. On June 03, 2020, analysts increased their price target for MCHP shares from 85 to 125.

The Average True Range (ATR) for Microchip Technology Incorporated is set at 3.63, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 4.77. The Price to Book ratio for the last quarter was 4.26, with the Price to Cash per share for the same quarter was set at 1.59. Price to Free Cash Flow for MCHP in the course of the last twelve months was 22.35 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for MCHP stock

Microchip Technology Incorporated [MCHP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.99. With this latest performance, MCHP shares dropped by -4.61% in over the last four-week period, additionally sinking by -8.56% over the last 6 months – not to mention a rise of 12.18% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MCHP stock in for the last two-week period is set at 42.42, with the RSI for the last a single of trading hit 40.67, and the three-weeks RSI is set at 46.71 for Microchip Technology Incorporated [MCHP]. The present Moving Average for the last 50 days of trading for this stock 103.44, while it was recorded at 102.32 for the last single week of trading, and 94.94 for the last 200 days.

Microchip Technology Incorporated [MCHP]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Microchip Technology Incorporated [MCHP] shares currently have an operating margin of +13.15 and a Gross Margin at +42.63. Microchip Technology Incorporated’s Net Margin is presently recorded at +10.82.

Return on Total Capital for MCHP is now 4.50, given the latest momentum, and Return on Invested Capital for the company is 3.96. Return on Equity for this stock inclined to 10.50, with Return on Assets sitting at 3.19. When it comes to the capital structure of this company, Microchip Technology Incorporated [MCHP] has a Total Debt to Total Equity ratio set at 172.26. Additionally, MCHP Total Debt to Total Capital is recorded at 63.27, with Total Debt to Total Assets ending up at 55.21. Long-Term Debt to Equity for the company is recorded at 160.56, with the Long-Term Debt to Total Capital now at 58.97.

Reflecting on the efficiency of the workforce at the company, Microchip Technology Incorporated [MCHP] managed to generate an average of $31,700 per employee. Receivables Turnover for the company is 5.81 with a Total Asset Turnover recorded at a value of 0.29.Microchip Technology Incorporated’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.40.

Microchip Technology Incorporated [MCHP]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Microchip Technology Incorporated posted 1.43/share EPS, while the average EPS was predicted by analysts to be reported at 1.43/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MCHP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Microchip Technology Incorporated go to 8.90%.

An analysis of insider ownership at Microchip Technology Incorporated [MCHP]

There are presently around $25,007 million, in the hands of institutional investors. The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 29,388,879, which is approximately 2.541% of the company’s market cap and around 2.20% of the total institutional ownership; DODGE & COX, holding 28,351,397 shares of the stock with an approximate value of $2.81 billion in MCHP stocks shares; and BLACKROCK INC., currently with $1.75 billion in MCHP stock with ownership of nearly 3.57% of the company’s market capitalization.

Positions in Microchip Technology Incorporated stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 312 institutional holders increased their position in Microchip Technology Incorporated [NASDAQ:MCHP] by around 17,388,712 shares. Additionally, 453 investors decreased positions by around 23,578,187 shares, while 116 investors held positions by with 211,150,097 shares. The mentioned changes placed institutional holdings at 252,116,996 shares, according to the latest SEC report filing. MCHP stock had 93 new institutional investments in for a total of 3,026,503 shares, while 101 institutional investors sold positions of 5,048,106 shares during the same period.

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