Microchip Technology Inc. (NASDAQ:MCHP) finished Friday with a subtraction of -$0.56 to close at $78.05, a downside of -0.71 percent. An average of 3,481,240 shares of common stock have been traded in the last five days. There was a gain of $0.97 in the past week, and it reached a new high 24 times over the past 12 months. The last 20 days have seen an average of 3,913,430 shares traded, while the 50-day average volume stands at 4,628,218.
MCHP stock has decreased by -4.81% in the last month. The company shares reached their 1-month lowest point of $75.24 on 09/27/23. With the stock rallying to its 52-week high on 07/31/23, shares of the company touched a low of $54.77 and a high of $94.30 in 52 weeks. It has reached a new high 21 times so far this year and achieved 11.10% or $7.80 in price. In spite of this, the price is down -17.23% from the 52-week high.
Insider Transactions
MCHP stock investors should be aware that Microchip Technology Inc. (MCHP) stock had its last reported insider trading activity 38 days ago on Aug 23. In this transaction, the insider spent $185,803. Senior VP and CFO, Bjornholt James Eric, disposed of 2,470 shares at a price of $78.32 on May 23. The insider now owns more than $193,450 worth of shares. Prior to that, Senior VP and CFO Bjornholt James Eric went on to Sale 2,777 shares at $81.58 each on Feb 23. An amount of $226,548 was transacted.
Valuation Metrics
Microchip Technology Inc. (MCHP) has a trailing price-to-earnings (P/E) ratio of 18.06. The stock’s beta is 1.61. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.85, the price-to-book (PB) ratio at 6.22, and the price-to-cash flow ratio at 12.88.
The company has a payout ratio of 31.46%. The company’s most recent quarterly dividend payment was $0.41 a share, representing a up of 7.05% from $0.3830 last year. Its latest increase dividend $0.0270 reported on Thursday August 3 2023.
Financial Health
The quick ratio of Microchip Technology Inc. for the recent quarter was 0.60, and the current ratio was 1.02, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.68 and a total debt to equity ratio of 0.89 for the recent quarter. Its gross profit as reported stood at $5.7 billion compared to revenue of $8.44 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Microchip Technology Inc.’s return on assets was 14.66%.
Earnings Surprise
For the recent quarter, Microchip Technology Inc. had $4.63 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $666.4 million in the quarter, while revenues were grew 23.89%. Shareholders own equity worth $544.33 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Microchip Technology Inc. (MCHP) price momentum. RSI 9-day as of the close on 29 September was 49.30%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.15%.
As of today, MCHP’s price is $77.33 +1.26% or $0.97 from its 5-day moving average. MCHP is currently trading -4.63% lower than its 20-day SMA and +5.09% higher than its 100-day SMA. However, the stock’s current price level is -11.55% below the SMA50 and +0.93% above the SMA200.
The stochastic %K and %D were 46.01% and 32.17%, respectively, and the average true range (ATR) was 1.94. With the 14-day stochastic at 52.13% and the average true range at 1.99, the RSI (14) stands at 45.95%. The stock has reached 0.57 on the 9-day MACD Oscillator while the 14-day reading was at 0.08.
Analyst Ratings
Wolfe Research launched coverage on Microchip Technology Inc. (NASDAQ: MCHP) in its analyst report released on July 20, 2023. The firm assigned the stock a Peer perform rating. The consensus rating for Microchip Technology Inc. (MCHP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell MCHP, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 17 others rate it as a “buy”.
What is MCHP’s price target for the next 12 months?
Analysts predict a range of price targets between $80.70 and $110.00, with a median target of $100.00. Taking a look at these predictions, the average price target given by analysts for Microchip Technology Inc. (MCHP) stock is $97.30.
