Brokerages expect Microchip Technology Inc. (NASDAQ:MCHP) to announce sales of $1.26 billion for the current quarter, Zacks Investment Research reports. Seven analysts have provided estimates for Microchip Technology’s earnings. The highest sales estimate is $1.27 billion and the lowest is $1.26 billion. Microchip Technology reported sales of $1.34 billion in the same quarter last year, which indicates a negative year over year growth rate of 6%. The firm is expected to issue its next earnings report on Tuesday, November 3rd.
On average, analysts expect that Microchip Technology will report full-year sales of $5.17 billion for the current financial year, with estimates ranging from $5.10 billion to $5.23 billion. For the next year, analysts forecast that the company will report sales of $5.61 billion, with estimates ranging from $5.47 billion to $5.72 billion. Zacks Investment Research’s sales calculations are an average based on a survey of research firms that follow Microchip Technology.
Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Tuesday, August 4th. The semiconductor company reported $1.56 earnings per share for the quarter, topping the consensus estimate of $1.44 by $0.12. Microchip Technology had a net margin of 12.23% and a return on equity of 24.31%. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter last year, the company earned $1.41 earnings per share. The company’s revenue was down 1.7% on a year-over-year basis.
MCHP has been the subject of a number of analyst reports. Argus raised their price objective on shares of Microchip Technology from $100.00 to $125.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Raymond James raised their price objective on shares of Microchip Technology from $115.00 to $125.00 and gave the company a “strong-buy” rating in a research report on Monday, July 13th. Piper Sandler restated a “buy” rating and issued a $130.00 price objective on shares of Microchip Technology in a research report on Monday, June 29th. Citigroup lifted their target price on shares of Microchip Technology from $104.00 to $120.00 and gave the company a “buy” rating in a research report on Wednesday, June 3rd. Finally, KeyCorp lifted their target price on shares of Microchip Technology from $105.00 to $115.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Seven investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $114.64.
MCHP stock opened at $100.60 on Friday. The firm has a 50 day moving average of $104.48 and a 200-day moving average of $92.98. The company has a current ratio of 0.83, a quick ratio of 0.57 and a debt-to-equity ratio of 1.41. Microchip Technology has a 12 month low of $53.15 and a 12 month high of $115.11. The firm has a market capitalization of $25.40 billion, a P/E ratio of 40.24, a price-to-earnings-growth ratio of 1.38 and a beta of 1.60.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were issued a $0.368 dividend. This represents a $1.47 dividend on an annualized basis and a dividend yield of 1.46%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.37. The ex-dividend date of this dividend was Thursday, August 20th. Microchip Technology’s payout ratio is presently 28.38%.
In related news, Director Wade F. Meyercord sold 1,000 shares of Microchip Technology stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $110.89, for a total value of $110,890.00. Following the transaction, the director now directly owns 8,392 shares of the company’s stock, valued at $930,588.88. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Richard J. Simoncic sold 3,802 shares of Microchip Technology stock in a transaction on Monday, August 24th. The stock was sold at an average price of $108.39, for a total transaction of $412,098.78. Following the completion of the transaction, the vice president now directly owns 19,530 shares in the company, valued at $2,116,856.70. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 7,695 shares of company stock valued at $836,561. Company insiders own 2.15% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Neuberger Berman Group LLC increased its stake in shares of Microchip Technology by 84.8% in the second quarter. Neuberger Berman Group LLC now owns 189,755 shares of the semiconductor company’s stock worth $19,965,000 after buying an additional 87,064 shares during the period. Quadrature Capital Ltd purchased a new position in shares of Microchip Technology in the second quarter worth $3,065,000. Handelsbanken Fonder AB purchased a new position in shares of Microchip Technology in the second quarter worth $5,526,000. Nuveen Asset Management LLC increased its position in Microchip Technology by 6.4% during the 2nd quarter. Nuveen Asset Management LLC now owns 895,310 shares of the semiconductor company’s stock valued at $94,285,000 after purchasing an additional 53,504 shares during the period. Finally, Muhlenkamp & Co. Inc. purchased a new position in Microchip Technology during the 2nd quarter valued at $10,004,000. 98.20% of the stock is currently owned by institutional investors.
About Microchip Technology
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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