As of Friday close, Microchip Technology Incorporated’s (NASDAQ:MCHP) stock was down -$6.06, moving down -6.77 percent to $83.46. The average number of shares traded per day over the past five days has been 6,127,760 shares. 1 time new highs have been achieved over the past 5 days, with a -$9.64 fall in that time frame. In the last twenty days, the average volume was 5,342,600, while in the previous 50 days, it was 5,349,568.
Since last month, MCHP stock retreated -3.95%. Shares of the company fell to $82.01 on 08/04/23, the lowest level in the past month. A 52-week high of $94.30 was reached on 07/31/23 after having rallying from a 52-week low of $54.77. Since the beginning of this year, MCHP’s stock price has risen by 18.80% or $13.21, and marked a new high 21 times. However, the stock has declined by -11.50% since its 52-week high.
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Sponsored
MCHP stock investors should be aware that Microchip Technology Incorporated (MCHP) stock had its last reported insider trading activity 74 days ago on May 23. Bjornholt James Eric, the Senior VP and CFO of the company, disposed of 2,470 shares for $78.32 on May 23. It resulted in a $193,450 divestment by the insider. Bjornholt James Eric sold 2,777 shares at an average price of $81.58 on Feb 23. The insider now owns 30,582 shares following the transaction. On Feb 23, Director Johnson Karlton D sold 396 shares at $81.00 apiece. The transaction was valued at $32,076.
Valuation Metrics
Right now, Microchip Technology Incorporated (MCHP) has a P/E ratio of about 20.78. The stock’s beta is 1.61. Besides these, the trailing price-to-sales (P/S) ratio of 5.23, the price-to-book (PB) ratio of 7.01, and the price-to-cash flow ratio of 18.09 may also be considered.
The latest dividend of $0.41 per share was paid out, which is 7.05% more than last year’s $0.3830.
Financial Health
In the three months ended March 30, Microchip Technology Incorporated’s quick ratio stood at 0.60, while its current ratio was 1.00, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.77, and the total debt-to-equity ratio was 0.99. On the profitability front, the trailing twelve-month gross margin is 67.50% percent. In the year ended March 30, operating margins totaled 36.80%. Based on annual data, MCHP earned $5.7 billion in gross profit and brought in $8.44 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.80%. Return on equity (ROE) for the past 12 months was 35.90%.
In Microchip Technology Incorporated’s quarter-end financial report for March 30, it reported total debt of $4.63 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. MCHP’s revenue rose 14.19% to $2.23 billion during the quarter, while net income inched up to $2.29 billion. While analysts expected Microchip Technology Incorporated to report $1.62 quarterly earnings, the actual figure was $1.64 per share, beating the consensus estimate by 1.20%. During the quarter, the company generated $1.13 billion in EBITDA. The liabilities of Microchip Technology Incorporated were 9.66 billion at the end of its most recent quarter ended March 30, and its total debt was $6.03 billion. The value of shareholders’ equity is $544.33 million.
Technical Picture
This quick technical analysis looks at Microchip Technology Incorporated’s (MCHP) price momentum. With a historical volatility rate of 48.32%, the RSI 9-day stood at 32.60% on 04 August.
With respect to its five-day moving average, the current Microchip Technology Incorporated price is down by -10.35% percent or -$9.64. At present, MCHP shares trade -3.65% below its 20-day simple moving average and +2.68% percent above its 100-day simple moving average. However, the stock is currently trading approximately +7.52% above its SMA50 and +41.60% above its SMA200.
Stochastic coefficient K was 25.84% and Stochastic coefficient D was 49.66%, while ATR was 3.23. Given the Stochastic reading of 11.76% for the 14-day period, the RSI (14) reading has been calculated as 39.92%. As of today, the MACD Oscillator reading stands at -2.61, while the 14-day reading stands at -2.62.
Analyst Ratings
Wolfe Research launched its rating on Microchip Technology Incorporated (NASDAQ: MCHP) to a Peer perform in a note to investors on July 20, 2023. Microchip Technology Incorporated (MCHP) has been rated Overweight by analysts. According to 0 brokerage firms, MCHP is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Microchip Technology Incorporated stock as buy, with 16 recommending it as overweight.
With a median target price of $100.00, the current consensus forecast for the stock is $85.00 – $110.00. Based on these forecasts, analysts predict Microchip Technology Incorporated (MCHP) will achieve an average price target of $97.54.
