Microchip Technology Incorporated (NASDAQ:MCHP) is rated as Buy by analysts at Needham. The firm was pushed by the stock performance to change their PT view from $90 to $100 on February 06. Analysts at BofA/Merrill, maintained the company shares at Neutral on November 08 but switched target price from $86 to $80. Brokerage firm B. Riley FBR, looks cautious as they stick to prior recommendation of Buy, in a call on November 08. However, they did change the target price from $105 to $100. KeyBanc Capital Mkts, released new analyst coverage on September 25, calling the stock is Sector Weight.
Microchip Technology Incorporated (MCHP) hit an intraday high Tuesday at $91.8. The shares finished at $91.51, after trading as low as $90.17 earlier in the session. It rose 2.87% in recent trade and currently has a stock-market value of $21.81B. Trading activity significantly improved as the volume at ready counter increased to 4,146,223 shares versus 3,319,185 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,453,521 shares. The stock is now 50.76% above against its bear-market low of $60.7 on October 26, 2018. It has retreated -13.87% since it’s 52-week high of $104.2 reached in June. Now the market price is up 12.92% on the year and up 27.24% YTD.
MCHP’s 50 day simple moving average (SMA 50) price is $75.75 and its 200-day simple moving average (SMA 200) price is $82.88. The company’s stock currently has a total float of 230.84M shares. Its weekly volatility is hovering around 2.77% and felt 3.12% volatility in price over a month. On the upside, the share price will test short term resistance at around $92.15. On a downside, the stock is likely to find some support, which begins at $90.52. The failure to get near-term support could push it to $89.53.
Separately, it has been reported that multiple insider activity took place at Microchip Technology Incorporated (MCHP). VP and CFO Bjornholt James Eric sold 1,866 shares for $21,567 in transaction occurred on 2018/11/23. After making this transaction, the VP and CFO owns a direct stake of 134,464 shares, worth $1,973,596, as per the last closing price. On 2018/11/23 Drehobl Stephen V, VP, MCU8 Division at MCHP, dumped 4,271 shares at an average price of $72.06 per share. The selling total is valued at $1,571,501.
VP, WW Sales and Appns., Little Mitchell R had divested 3,358 shares for $11,278 through a trade on 2018/11/23. Following this activity, the insider holds 241,977 shares worth $1,032,050 as of recent close. Wall Street’s most bullish Microchip Technology Incorporated (NASDAQ:MCHP) analysts are predicting the share price to blow past $130 per share during the next 12 months. The current median share price forecast by them is $100, suggesting that the stock could increase 9.28% in that time frame. The average price target of $101.19 calls for a nearly 10.58% increase in the stock price.
When looking at valuations, Microchip Technology Incorporated (MCHP) has a cheap P/E of 102.82x as compared to industry average of 4087.57x. Moreover, it trades for 13.55 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.2x price/book and 4.34x price/sales. Compared to others, Microchip Technology Incorporated is in a different league with regards to profitability, having net margins of 6.5%. To put some perspective around this, the industry’s average net margin is 20.06%. MCHP’s ROE is 7%, which is also considerably worse than the industry’s ROE of 10.01%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 2.04.
Shares of Microchip Technology Incorporated (MCHP) have gained 6.9% since the company’s last earnings report. Over the past 12 fiscal quarters, Microchip Technology Incorporated (NASDAQ:MCHP) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. MCHP last reported earnings on February 05, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $1.66 per share, -68.02% change on the same period last year. That was better than consensus for $1.58. Revenue for the recent quarter stood at $1.42 billion, up 42% on last year and above the $1.41 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.33 billion to $1.42 billion, which should be compared with $1.07 billion generated last year. EPS is seen in a range of $1.42 to $1.64, against the $1.54 reported a year ago.