As of Thursday close, Microchip Technology Incorporated’s (NASDAQ:MCHP) stock was down -$0.15, moving down -0.18 percent to $81.84. The average number of shares traded per day over the past five days has been 4,399,200 shares. 5 times new highs have been achieved over the past 5 days, with a $4.08 gain in that time frame. In the last twenty days, the average volume was 4,890,680, while in the previous 50 days, it was 4,831,070.
Since last month, MCHP stock retreated -9.34%. Shares of the company fell to $77.22 on 08/25/23, 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 16.50% or $11.59, and marked a new high 21 times. However, the stock has declined by -13.21% since its 52-week high.
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MCHP stock investors should be aware that Microchip Technology Incorporated (MCHP) stock had its last reported insider trading activity 9 days ago on Aug 23. Bjornholt James Eric, the Senior VP and CFO of the company, disposed of 2,363 shares for $78.63 on Aug 23. It resulted in a $185,803 divestment by the insider. Bjornholt James Eric sold 2,470 shares at an average price of $78.32 on May 23. The insider now owns 32,004 shares following the transaction. On Feb 23, Senior VP and CFO Bjornholt James Eric sold 2,777 shares at $81.58 apiece. The transaction was valued at $226,548.
Valuation Metrics
Right now, Microchip Technology Incorporated (MCHP) has a P/E ratio of about 18.94. The stock’s beta is 1.63. Besides these, the trailing price-to-sales (P/S) ratio of 4.98, the price-to-book (PB) ratio of 6.53, and the price-to-cash flow ratio of 13.23 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. On Thursday August 3 2023, a $0.0270 dividend increase was announced.
Financial Health
In the three months ended June 29, 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 June 29 was 0.68, and the total debt-to-equity ratio was 0.88. On the profitability front, the trailing twelve-month gross margin is 67.90% percent. In the year ended June 29, EBITDA margin amounted to 48.71%, whereas operating margins totaled 37.70%. 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 37.20%.
In Microchip Technology Incorporated’s quarter-end financial report for June 29, 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 $1.64 quarterly earnings, the actual figure was $1.64 per share. 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 June 29, and its total debt was $6.06 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 25.71%, the RSI 9-day stood at 49.98% on 31 August.
With respect to its five-day moving average, the current Microchip Technology Incorporated price is up by +5.25% percent or $4.08. At present, MCHP shares trade -8.58% below its 20-day simple moving average and +1.60% percent above its 100-day simple moving average. However, the stock is currently trading approximately -1.35% below its SMA50 and +7.93% above its SMA200.
Stochastic coefficient K was 73.70% and Stochastic coefficient D was 58.35%, while ATR was 2.20. Given the Stochastic reading of 79.25% for the 14-day period, the RSI (14) reading has been calculated as 46.67%. As of today, the MACD Oscillator reading stands at 1.43, while the 14-day reading stands at 1.45.
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 17 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 $97.65.
