Microchip Technology Incorporated [NASDAQ: MCHP] stock went on an upward path that rose over 0.49% on Tuesday, amounting to a one-week price increase of more than 4.63%. The company report on April 28, 2022 that PIC® and AVR® Microcontrollers Anchor the Majority of Embedded Designs Today.
Microchip grows its commitment to the 8-bit PIC and AVR MCUs by releasing five new product families and over 60 new devices.
With smartphones, autonomous vehicles, and 5G wireless connectivity dominating the landscape of embedded design in 2022, Microchip’s 8-bit PIC® and AVR® microcontroller (MCU) families are gaining market share. Over the past 50 years, the market for 8-bit MCUs has grown steadily and Microchip currently sells one device for every human in the western hemisphere each year. To support this ongoing trend, Microchip Technology Inc. (Nasdaq: MCHP) today announces the release of five new product families and over 60 new individual devices that offer embedded designers simple solutions to their most common problems.
Over the last 12 months, MCHP stock dropped by -5.87%. The one-year Microchip Technology Incorporated stock forecast points to a potential upside of 26.61. The average equity rating for MCHP stock is currently 2.10, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $39.65 billion, with 554.90 million shares outstanding and 544.88 million shares in the current float. Compared to the average trading volume of 5.35M shares, MCHP stock reached a trading volume of 4028702 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 $92.92 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 2.10. 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.
Goldman have made an estimate for Microchip Technology Incorporated shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 28, 2022. While these analysts kept the previous recommendation, Wells Fargo dropped their target price from $85 to $80. The new note on the price target was released on February 04, 2022, representing the official price target for Microchip Technology Incorporated stock. Previously, the target price had yet another raise from $92 to $98, while UBS kept a Buy rating on MCHP stock. On February 04, 2022, analysts increased their price target for MCHP shares from 82 to 84.
The Average True Range (ATR) for Microchip Technology Incorporated is set at 2.76, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 6.15. The Price to Book ratio for the last quarter was 6.52, with the Price to Cash per share for the same quarter was set at 0.54. Price to Free Cash Flow for MCHP in the course of the last twelve months was 22.48 with Quick ratio for the last quarter at 1.20.
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 4.63. With this latest performance, MCHP shares dropped by -7.81% in over the last four-week period, additionally sinking by -11.33% over the last 6 months – not to mention a drop of -5.87% 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 48.87, with the RSI for the last a single of trading hit 51.50, and the three-weeks RSI is set at 47.67 for Microchip Technology Incorporated [MCHP]. The present Moving Average for the last 50 days of trading for this stock 70.44, while it was recorded at 66.76 for the last single week of trading, and 76.40 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 +18.38 and a Gross Margin at +44.99. Microchip Technology Incorporated’s Net Margin is presently recorded at +6.42.
Return on Total Capital for MCHP is now 6.75, given the latest momentum, and Return on Invested Capital for the company is 2.53. Return on Equity for this stock inclined to 6.40, with Return on Assets sitting at 2.06. When it comes to the capital structure of this company, Microchip Technology Incorporated [MCHP] has a Total Debt to Total Equity ratio set at 169.93. Additionally, MCHP Total Debt to Total Capital is recorded at 62.95, with Total Debt to Total Assets ending up at 55.04. Long-Term Debt to Equity for the company is recorded at 144.40, with the Long-Term Debt to Total Capital now at 53.49.
Reflecting on the efficiency of the workforce at the company, Microchip Technology Incorporated [MCHP] managed to generate an average of $17,918 per employee. Receivables Turnover for the company is 5.63 with a Total Asset Turnover recorded at a value of 0.32.Microchip Technology Incorporated’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.80.
MCHP Stock EPS
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 20.50%.
Microchip Technology Incorporated [MCHP] Insider Position Details
There are presently around $34,063 million, or 90.70% of MCHP stock, in the hands of institutional investors. The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 63,734,425, which is approximately 1.678% of the company’s market cap and around 2.00% of the total institutional ownership; BLACKROCK INC., holding 42,993,442 shares of the stock with an approximate value of $2.92 billion in MCHP stocks shares; and DODGE & COX, currently with $2.0 billion in MCHP stock with ownership of nearly -6.349% of the company’s market capitalization.
Positions in Microchip Technology Incorporated stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 517 institutional holders increased their position in Microchip Technology Incorporated [NASDAQ:MCHP] by around 33,368,806 shares. Additionally, 423 investors decreased positions by around 34,237,348 shares, while 170 investors held positions by with 434,358,493 shares. The mentioned changes placed institutional holdings at 501,964,647 shares, according to the latest SEC report filing. MCHP stock had 139 new institutional investments in for a total of 2,521,830 shares, while 84 institutional investors sold positions of 3,079,524 shares during the same period.