Weekly Performance Analysis for Microchip Technology Incorporated (MCHP)

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Microchip Technology Incorporated (NASDAQ:MCHP) saw an upside of 3.68% to close Monday at $76.31 after adding $2.71 on the day. The 5-day average trading volume is 4,171,820 shares of the company’s common stock. It has gained $76.66 in the past week and touched a new high 3 times within the past 5 days. An average of 3,936,775 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,365,954.

MCHP’s 1-month performance is 7.15% or $6.38 on its low of $67.69 reached on 12/28/22. The company’s shares have touched a 52-week low of $54.33 and high of $80.50, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, MCHP has achieved 8.63% or $6.06 and has reached a new high 8 times. However, the current price is down -5.20% from the 52-week high price.

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Insider Transactions

MCHP stock investors last saw insider trading activity on Nov 22.Bjornholt James Eric (Senior VP and CFO) most recently sold 2,630 shares at $72.88 per share on Nov 22. This transaction cost the insider $191,674. Director, CHAPMAN MATTHEW W, sold 1,000 shares at a price of $72.88 on Nov 22. Then, on Nov 15, Senior VP, Analog/Intrfce BU SIMONCIC RICHARD J sold 8,596 shares at a price of $77.15 per share. This transaction amounted to $663,187.

Valuation Metrics

MCHP stock has a beta of 1.59. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.36 while the price-to-book (PB) in the most recent quarter is 6.89, with the price to cash flow ratio at 18.53.

Microchip Technology Incorporated’s quick ratio for the period ended June 29 was 0.60, with the current ratio over the same period at 1.10. As well, the company’s long term debt to equity for the quarter ending June 29 was 1.03, while the total debt to equity was 1.20. In terms of profitability, the gross margin trailing 12 months is 66.50%. The firm’s gross profit as reported stood at $4.45 billion against revenue of $6.82 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Microchip Technology Incorporated’s cash and short-term investments amounted to $2.0 million against total debt of $7.6 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 55.69% to $546.2 million, while revenue of $507.2 million was 7.14% off the previous quarter. Analysts expected MCHP to announce $1.34 per share in earnings in its latest quarter, but it posted $1.37, representing a 2.20% surprise. EBITDA for the quarter stood at more than $1.01 billion. MCHP stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 10.04 billion, with total debt at $7.6 billion. Shareholders hold equity totaling $550.01 million.

Let’s look briefly at Microchip Technology Incorporated (MCHP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 62.83% to suggest the stock is trending Neutral, with historical volatility in this time period at 30.30%.

The stock’s 5-day moving average is $74.01, reflecting a +1.86% or $1.39 change from its current price. MCHP is currently trading +4.59% above its 20-day SMA, +17.93% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +12.62% and SMA200 by+8.87%.

Stochastic %K and %D was 69.01% and 65.76% and the average true range (ATR) pointed at 2.34. The RSI (14) points at 59.05%, while the 14-day stochastic is at 95.76% with the period’s ATR at 2.37. The stock’s 9-day MACD Oscillator is pointing at -0.68 and 0.56 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Microchip Technology Incorporated (NASDAQ: MCHP), Credit Suisse launched coverage with a Neutral rating. Analysts offering their rating for MCHP stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate MCHP as a “sell,”, while 10 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 17 have offered a “buy” rating.

What is MCHP’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $65.00 and a high of $125.00, with their median price target at $84.00. Looking at these predictions, the average price target given by analysts is for Microchip Technology Incorporated (MCHP) stock is $83.13.


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