Microchip Technology (NASDAQ:MCHP) Shares Gap Up on Earnings Beat

Microchip Technology Incorporated (NASDAQ:MCHP) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.14, but opened at $53.99. Microchip Technology shares last traded at $55.52, with a volume of 140,340 shares.

The semiconductor company reported $0.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.01. The firm had revenue of $970.50 million during the quarter, compared to analyst estimates of $962.86 million. Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. Microchip Technology’s revenue for the quarter was down 26.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.57 earnings per share.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Investors of record on Thursday, May 22nd will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.29%. The ex-dividend date is Thursday, May 22nd. Microchip Technology’s payout ratio is presently 325.00%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on MCHP shares. Stifel Nicolaus increased their target price on Microchip Technology from $60.00 to $70.00 and gave the company a “buy” rating in a research report on Friday. KeyCorp lowered their price objective on shares of Microchip Technology from $70.00 to $60.00 and set an “overweight” rating for the company in a research report on Friday, February 7th. Piper Sandler restated an “overweight” rating and issued a $65.00 target price (down from $85.00) on shares of Microchip Technology in a report on Friday, February 7th. Raymond James increased their price target on shares of Microchip Technology from $60.00 to $65.00 and gave the company a “strong-buy” rating in a report on Friday. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $70.00 price objective on shares of Microchip Technology in a research report on Tuesday, March 4th. One analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and a consensus target price of $67.42.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,724 shares of the firm’s stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total value of $226,717.12. Following the completion of the sale, the chief financial officer now directly owns 33,272 shares in the company, valued at $2,025,599.36. This trade represents a 10.07 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Mainstream Capital Management LLC purchased a new stake in Microchip Technology during the 4th quarter worth approximately $26,000. Rakuten Securities Inc. grew its holdings in shares of Microchip Technology by 309.5% during the fourth quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 359 shares during the last quarter. OFI Invest Asset Management purchased a new stake in shares of Microchip Technology during the fourth quarter valued at $29,000. Garde Capital Inc. purchased a new position in Microchip Technology in the 1st quarter worth $30,000. Finally, Financial Life Planners acquired a new stake in shares of Microchip Technology during the fourth quarter worth about $32,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Trading Up 12.6 %

The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12. The stock has a market cap of $29.76 billion, a PE ratio of 98.80 and a beta of 1.42. The stock has a 50-day moving average of $47.06 and a 200 day moving average of $56.57.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.