Microchip Technology (NASDAQ:MCHP)‘s stock had its “buy” rating restated by analysts at Needham & Company LLC in a research note issued to investors on Thursday.
The analysts wrote, “MCHP reported strong 2Q19 results driven by growth across all segments. MCHP is doing a good job of integrating Microsemi and forecasts $8 of EPS in FY20. Unsurprisingly, there’s a temporary pause in auto due to the transition to the new emission standards in Europe and softness in China. While uncertainty still exists around the Chinese tariffs, MCHP has reduced MSCC and internal inventory to managed levels. We see growth drivers in Aerospace/Defense, continued synergies from MSCC and de-leveraging. With the stock down 20% YTD, we believe the shares are discounting much of this uncertainty.””
Other equities research analysts also recently issued reports about the company. Nomura decreased their target price on Microchip Technology from $110.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday, August 10th. Raymond James downgraded Microchip Technology from an “outperform” rating to a “market perform” rating and set a $105.00 target price on the stock. in a research report on Tuesday, September 25th. Morgan Stanley decreased their target price on Microchip Technology from $95.00 to $75.00 and set an “equal weight” rating on the stock in a research report on Wednesday, October 10th. KeyCorp initiated coverage on Microchip Technology in a research report on Tuesday, September 25th. They set a “sector weight” rating on the stock. Finally, Bank of America downgraded Microchip Technology from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $115.00 to $95.00 in a research report on Monday, September 17th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and eleven have given a buy rating to the stock. Microchip Technology currently has an average rating of “Hold” and an average price target of $105.11.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Wednesday, November 7th. The semiconductor company reported $1.68 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.65 by $0.03. The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.51 billion. Microchip Technology had a return on equity of 37.96% and a net margin of 0.59%. The firm’s revenue was up 49.5% compared to the same quarter last year. During the same period last year, the business posted $1.41 earnings per share. On average, sell-side analysts predict that Microchip Technology will post 6.36 earnings per share for the current year.
In other Microchip Technology news, COO Ganesh Moorthy purchased 12,000 shares of the business’s stock in a transaction on Tuesday, August 14th. The stock was purchased at an average price of $84.10 per share, for a total transaction of $1,009,200.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Stephen V. Drehobl sold 3,998 shares of the firm’s stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $84.33, for a total transaction of $337,151.34. Following the transaction, the vice president now owns 16,931 shares of the company’s stock, valued at approximately $1,427,791.23. The disclosure for this sale can be found here. 2.13% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in MCHP. Ceredex Value Advisors LLC bought a new position in Microchip Technology during the third quarter worth about $114,767,000. Artisan Partners Limited Partnership bought a new position in Microchip Technology during the second quarter worth about $96,187,000. OppenheimerFunds Inc. lifted its stake in Microchip Technology by 114.5% during the second quarter. OppenheimerFunds Inc. now owns 1,753,557 shares of the semiconductor company’s stock worth $159,486,000 after purchasing an additional 935,884 shares during the period. Millennium Management LLC lifted its stake in Microchip Technology by 1,900.4% during the second quarter. Millennium Management LLC now owns 705,152 shares of the semiconductor company’s stock worth $64,134,000 after purchasing an additional 669,901 shares during the period. Finally, Janus Henderson Group PLC lifted its stake in Microchip Technology by 4.7% during the second quarter. Janus Henderson Group PLC now owns 12,919,605 shares of the semiconductor company’s stock worth $1,175,042,000 after purchasing an additional 582,965 shares during the period.
Microchip Technology Company Profile
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.
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