Microchip Technology, Inc. [MCHP] stock Downgrade by Piper Sandler analyst, price target now $80

Microchip Technology, Inc. [NASDAQ: MCHP] price plunged by -0.35 percent to reach at -$0.3. The company report on January 8, 2024 at 4:10 PM that Microchip Technology Provides Preliminary Fiscal Third Quarter Revenue Results and Announces Earnings Release Date.

“Today, based on preliminary financial information, we are providing our expected revenue for the fiscal third quarter ended December 31, 2023. The weakening economic environment that our customers and distributors faced during the December 2023 quarter resulted in many of them wanting to receive a lower level of shipments as they took actions to further de-risk their inventory positions,” said Ganesh Moorthy, President and Chief Executive Officer. “Many customers also had extended shutdowns or closures at the end of the December quarter as they managed their operational activities. The impact of these and related factors was that certain backlog that we had planned to ship when we provided our guidance on November 2, 2023 did not ship to customers before the end of the December quarter. As a result, our preliminary revenue indication for the December 2023 quarter is to be down sequentially about 22% compared to our guidance of down 15% to 20%, which we provided on November 2, 2023. We plan to provide additional information, including our full financial results for the December 2023 quarter, on February 1, 2024.”.

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A sum of 6724999 shares traded at recent session while its average daily volume was at 4.92M shares. Microchip Technology, Inc. shares reached a high of $86.60 and dropped to a low of $84.0613 until finishing in the latest session at $85.34.

The one-year MCHP stock forecast points to a potential upside of 6.9. The average equity rating for MCHP stock is currently 1.74, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $91.66 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.

Piper Sandler have made an estimate for Microchip Technology, Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 04, 2024.

The Average True Range (ATR) for Microchip Technology, Inc. is set at 2.14, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 5.16. The Price to Book ratio for the last quarter was 6.63, with the Price to Cash per share for the same quarter was set at 0.47. Price to Free Cash Flow for MCHP in the course of the last twelve months was 14.62 with Quick ratio for the last quarter at 0.64.

MCHP Stock Performance Analysis:

Microchip Technology, Inc. [MCHP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.41. With this latest performance, MCHP shares dropped by -0.55% in over the last four-week period, additionally sinking by -3.45% over the last 6 months – not to mention a rise of 17.27% 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 46.14, with the RSI for the last a single of trading hit 41.10, and the three-weeks RSI is set at 49.51 for Microchip Technology, Inc. [MCHP]. The present Moving Average for the last 50 days of trading for this stock 83.34, while it was recorded at 84.59 for the last single week of trading, and 81.43 for the last 200 days.

Insight into Microchip Technology, Inc. Fundamentals:

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 0.64 and a Current Ratio set at 1.03.

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, Inc. go to 12.10%.

Microchip Technology, Inc. [MCHP] Institutonal Ownership Details

The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in MCHP stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in MCHP stock with ownership which is approximately 5.8325%.