Microchip Technology Incorporated [MCHP] Stock trading around $82.69 per share: What’s Next?

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Microchip Technology Incorporated [NASDAQ: MCHP] traded at a high on 11/22/21, posting a 0.01 gain after which it closed the day’ session at $82.69. The company report on November 15, 2021 that Microchip Technology Announces Receiving Investment Grade Ratings From Both Moody’s and Fitch.

(NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, announced that it has received investment grade debt ratings from both Moody’s and Fitch.


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“We are pleased to have achieved this milestone of receiving investment grade ratings from both Moody’s and Fitch,” said Ganesh Moorthy, Microchip’s President and CEO. “Receiving investment grade ratings from both agencies is an important achievement that will enable us to execute on our recently announced capital allocation strategy to pay increasing cash dividends and initate stock repurchases under our new program that we announced last week. We look forward to continuing on our journey of returning capital to our stockholders.”.

The results of the trading session contributed to over 5854188 shares changing hands. Over the past one week, the price volatility of Microchip Technology Incorporated stands at 2.29% while the volatility over the past one month is 3.32%.

The market cap for MCHP stock reached $46.23 billion, with 551.30 million shares outstanding and 543.76 million shares in the current float. Compared to the average trading volume of 3.83M shares, MCHP reached a trading volume of 5854188 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about 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 $96.66 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 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.

Stifel have made an estimate for Microchip Technology Incorporated shares, keeping their opinion on the stock as Hold, with their previous recommendation back on October 14, 2021. While these analysts kept the previous recommendation, UBS raised their target price to Neutral. The new note on the price target was released on October 13, 2021, representing the official price target for Microchip Technology Incorporated stock. Previously, the target price had yet another raise to $165, while Wells Fargo analysts kept a Equal Weight rating on MCHP stock. On September 17, 2021, analysts increased their price target for MCHP shares from 170 to 185.

The Average True Range (ATR) for Microchip Technology Incorporated is set at 2.40, with the Price to Sales ratio for MCHP stock in the period of the last 12 months amounting to 7.66. The Price to Book ratio for the last quarter was 8.00, with the Price to Cash per share for the same quarter was set at 0.46. Price to Free Cash Flow for MCHP in the course of the last twelve months was 30.38 with Quick ratio for the last quarter at 1.30.

How has MCHP stock performed recently?

Microchip Technology Incorporated [MCHP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.62. With this latest performance, MCHP shares gained by 9.96% in over the last four-week period, additionally plugging by 6.87% over the last 6 months – not to mention a rise of 26.26% 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 57.90, with the RSI for the last a single of trading hit 56.74, and the three-weeks RSI is set at 57.45 for Microchip Technology Incorporated [MCHP]. The present Moving Average for the last 50 days of trading for this stock 78.17, while it was recorded at 83.16 for the last single week of trading, and 75.96 for the last 200 days.

Microchip Technology Incorporated [MCHP]: Deeper insight into the 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 1.30 and a Current Ratio set at 1.90.

Earnings analysis for Microchip Technology Incorporated [MCHP]

With the latest financial reports released by the company, Microchip Technology Incorporated posted 1.56/share EPS, while the average EPS was predicted by analysts to be reported at 1.43/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 9.10%. 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 18.30%.

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Insider trade positions for Microchip Technology Incorporated [MCHP]

There are presently around $42,003 million, or 90.40% of MCHP stock, in the hands of institutional investors. The top three institutional holders of MCHP stocks are: VANGUARD GROUP INC with ownership of 62,682,828, which is approximately 1.353% of the company’s market cap and around 2.03% of the total institutional ownership; BLACKROCK INC., holding 41,046,518 shares of the stock with an approximate value of $3.39 billion in MCHP stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $2.69 billion in MCHP stock with ownership of nearly -9.458% of the company’s market capitalization.

Positions in Microchip Technology Incorporated stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 431 institutional holders increased their position in Microchip Technology Incorporated [NASDAQ:MCHP] by around 43,484,952 shares. Additionally, 408 investors decreased positions by around 33,360,230 shares, while 180 investors held positions by with 431,175,318 shares. The mentioned changes placed institutional holdings at 508,020,500 shares, according to the latest SEC report filing. MCHP stock had 72 new institutional investments in for a total of 10,708,198 shares, while 77 institutional investors sold positions of 4,869,262 shares during the same period.

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