Wolfe Research slashes price target on Microchip Technology, Inc. [MCHP] – find out why.

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Microchip Technology, Inc. [NASDAQ: MCHP] loss -2.21% on the last trading session, reaching $70.66 price per share at the time. The company report on October 18, 2023 at 8:00 AM that Microchip’s Detroit Automotive Technology Center is the Destination for Automotive Clients.

The 24,000-square-foot facility includes new high-voltage and E-Mobility labs, as well as technical training rooms for automotive clients to develop and optimize designs.

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Microchip Technology, Inc. represents 545.46 million in outstanding shares, while the company has a total market value of $38.46 billion with the latest information. MCHP stock price has been found in the range of $69.21 to $71.34.

If compared to the average trading volume of 4.41M shares, MCHP reached a trading volume of 6768995 in the most recent trading day, which is why market watchdogs consider the stock to be active.

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

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MCHP shares is $96.80 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 1.74. 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.

Wolfe Research have made an estimate for Microchip Technology, Inc. shares, keeping their opinion on the stock as Peer Perform, with their previous recommendation back on July 20, 2023.

The Average True Range (ATR) for Microchip Technology, Inc. is set at 2.39, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 4.39. The Price to Book ratio for the last quarter was 5.63, with the Price to Cash per share for the same quarter was set at 0.50. Price to Free Cash Flow for MCHP in the course of the last twelve months was 11.66 with Quick ratio for the last quarter at 0.60.

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Trading performance analysis for MCHP stock

Microchip Technology, Inc. [MCHP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.01. With this latest performance, MCHP shares dropped by -9.47% in over the last four-week period, additionally sinking by -6.26% over the last 6 months – not to mention a rise of 15.38% 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 33.06, with the RSI for the last a single of trading hit 29.34, and the three-weeks RSI is set at 35.87 for Microchip Technology, Inc. [MCHP]. The present Moving Average for the last 50 days of trading for this stock 78.17, while it was recorded at 72.62 for the last single week of trading, and 80.71 for the last 200 days.

Microchip Technology, Inc. [MCHP]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Microchip Technology, Inc. [MCHP] shares currently have an operating margin of +36.88 and a Gross Margin at +58.78. Microchip Technology, Inc.’s Net Margin is presently recorded at +26.52.

Return on Total Capital for MCHP is now 23.17, given the latest momentum, and Return on Invested Capital for the company is 17.62. Return on Equity for this stock inclined to 36.07, with Return on Assets sitting at 13.74. When it comes to the capital structure of this company, Microchip Technology, Inc. [MCHP] has a Total Debt to Total Equity ratio set at 101.33. Additionally, MCHP Total Debt to Total Capital is recorded at 50.33, with Total Debt to Total Assets ending up at 40.32. Long-Term Debt to Equity for the company is recorded at 79.38, with the Long-Term Debt to Total Capital now at 39.43.

Reflecting on the efficiency of the workforce at the company, Microchip Technology, Inc. [MCHP] managed to generate an average of $99,013 per employee. Receivables Turnover for the company is 7.10 with a Total Asset Turnover recorded at a value of 0.52.Microchip Technology, Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.02.

Microchip Technology, Inc. [MCHP]: An earnings per share (EPS) analysis

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, Inc. go to 12.10%.

An analysis of Institutional ownership at Microchip Technology, Inc. [MCHP]

The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2579%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $201.66 billion in MCHP stocks shares; and BERKSHIRE HATHAWAY INC, currently with $177.59 billion in MCHP stock with ownership which is approximately 5.7994%.

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