Microchip Technology Incorporated [NASDAQ: MCHP] stock went on an upward path that rose over 2.87% on Friday, amounting to a one-week price increase of more than 7.71%. The company report on August 18, 2020 that Microchip Announces High-Speed CoaXPress® 2.0 Devices that Speed Machine Vision Image Capture While Simplifying System Design and Deployment.
Builds on company’s work with industry standards bodies and lead customers who are using the devices to create capture cards and cameras supporting the new specifications.
Until the 12.5Gbps CoaXPress® 2.0 interface standard was ratified last year, machine-vision image-capture solutions had replaced conveyor belts as the primary roadblock to achieving faster production-line throughput. Now, Microchip Technology Inc. (Nasdaq: MCHP) has taken the next step toward realizing the full potential of CoaXPress (CXP) on the factory floor with the first single-chip physical-layer interface devices to include features that streamline machine vision system design, maximize transmission speed and simplify deployment in high-volume bottling operations, food inspection, industrial inspection and imaging applications.“We have worked with the Japan Industrial Imaging Association (JIIA) standards organization and our lead customers to optimize our offering in conjunction with CXP so it fully exploits the specification’s benefits on the factory floor,” said Matthias Kaestner, vice president, Automotive Infotainment Systems business unit. “Our low-latency, low-power transmission solutions integrate an equalizer, cable driver and clock data recovery into a single chip that enables camera and capture card manufacturers to deliver high-speed, high-resolution video and control signaling along with power over a single coax cable.”Microchip’s EQCO125X40 family of CoaXPress devices is the first to implement the CXP 2.0 standard, starting from a new backward compatible design based on the specification, with an integrated clock data recovery (CDR) at all speed levels and a camera-side clock to support the demands of real-world environments. The devices significantly increase machine-vision processing throughput by enabling cameras and capture cards to transmit four to eight times faster than alternative solutions. In addition, these devices enable four times the cable/link distance with much lower power and near-zero latency. The product family also increases design tolerances and flexibility by seamlessly locking on all frequencies at any speed, from CXP-1 to CXP-12, and eliminates the need for multiple channels by supporting 12.5Gbps of bandwidth over a single cable. Broader cabling options ensure systems can be installed where needed and the integrated CDR improves jitter performance for the signal sent from the camera to the capture card. The on-camera low-frequency clock recovery eliminates the need to program a separate clock in the FPGA. The integrated link signal integrity testing enables the system to perform real-time checks of cable link integrity before and during operations.For card makers, Microchip’s new offering makes it easier and less expensive to develop more robust products that customers can deploy wherever they need them on the production line. The products enable pre-setup and real-time cable link quality tests to be performed, giving users more robust and comprehensive solutions to their challenges. They also have the option to scale up to 50 Gbps over multiple cables. “Microchip’s new CXP-12 family provides our latest products with a compact and low component count single-chip equalizer solution which can therefore easily meet the CoaXPress return loss specification,” said Chris Beynon, CTO with Active Silicon. “The devices also have an elegant feature to allow real-time cable margin testing to detect aging or worn cables before any bit errors would be seen in normal operation.”Microchip’s CXP devices enable manufacturers to get the same throughput from two ports on cameras and frame grabbers as they previously could with four. The devices can be used to retrieve a real-time low-frequency clock at the camera side, which provides more accurate signal timing. The manufacturers can also use it as a cable repeater, further extending the distances over which the cameras can be linked. Their low power consumption makes them ideal for bringing to market smaller, better-performing image-capture solutions that increase customer value yet are simpler and less costly to design.“With Microchip’s CXP devices, we support our market needs for a doubling in data throughput while keeping the same system costs,” said Andre Jacobs, director of marketing and sales with Adimec. “JIIA is excited to see that Microchip is bringing low-power, high-performance CoaXPress 2.0 solutions to market that fully comply to the recently released CoaXPress 2.0 specification,” said Sachio Kiura, Chairman of the Japan Industrial Imaging Association.In addition to providing key capabilities that Microchip believes will help to accelerate the adoption of better-performing, lower-cost machine-vision solutions in industrial inspection applications, the company expects that its CoaXPress 2.0 family will have an equally transformational effect on applications including traffic monitoring, surveillance and security, medical inspection systems and embedded vision solutions. The family is part of an extensive product portfolio spanning the requirements for creating total system solutions, including Microchip’s 12Gbps PolarFire® field programmable gate arrays (FPGAs) that seamlessly support the CoaXPress protocol with minimal developer effort while enabling a low-power, low-latency and small-footprint solution.
Over the last 12 months, MCHP stock rose by 20.48%. The one-year Microchip Technology Incorporated stock forecast points to a potential upside of 9.45. The average equity rating for MCHP stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $26.49 billion, with 247.70 million shares outstanding and 247.07 million shares in the current float. Compared to the average trading volume of 3.07M shares, MCHP stock reached a trading volume of 3858367 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $119.19 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 3.23, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 5.03. The Price to Book ratio for the last quarter was 4.86, with the Price to Cash per share for the same quarter was set at 1.55. Price to Free Cash Flow for MCHP in the course of the last twelve months was 21.05 with Quick ratio for the last quarter at 0.60.
MCHP Stock Performance Analysis:
Microchip Technology Incorporated [MCHP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.71. With this latest performance, MCHP shares gained by 6.30% in over the last four-week period, additionally plugging by 7.79% over the last 6 months – not to mention a rise of 20.48% 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 58.64, with the RSI for the last a single of trading hit 61.79, and the three-weeks RSI is set at 56.46 for Microchip Technology Incorporated [MCHP]. The present Moving Average for the last 50 days of trading for this stock 103.62, while it was recorded at 106.34 for the last single week of trading, and 95.34 for the last 200 days.
Insight into Microchip Technology Incorporated Fundamentals:
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 0.60 and a Current Ratio set at 0.80.
MCHP Stock EPS
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 7.00%.
Microchip Technology Incorporated [MCHP] Insider Position Details
There are presently around $26,888 million, in the hands of institutional investors. The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 29,170,294, which is approximately -0.744% of the company’s market cap and around 2.20% of the total institutional ownership; DODGE & COX, holding 25,010,629 shares of the stock with an approximate value of $2.7 billion in MCHP stocks shares; and BLACKROCK INC., currently with $2.06 billion in MCHP stock with ownership of nearly 8.257% 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 355 institutional holders increased their position in Microchip Technology Incorporated [NASDAQ:MCHP] by around 14,377,478 shares. Additionally, 401 investors decreased positions by around 18,455,833 shares, while 118 investors held positions by with 216,292,032 shares. The mentioned changes placed institutional holdings at 249,125,343 shares, according to the latest SEC report filing. MCHP stock had 118 new institutional investments in for a total of 2,695,938 shares, while 75 institutional investors sold positions of 2,823,842 shares during the same period.