KeyBanc maintained its Microchip Technology [MCHP] rating to the equivalent of Overweight but changed the price target to $170 from $165, in a research note dated 2021-01-06. That figure represents around a 21.26% premium from where the company’s shares closed on Tuesday. Other analysts also revised their coverage, with B. Riley Securities’s analysts reiterating the shares to “a Buy” rating in a research note to investors issued in early November. Meanwhile, Citigroup had lowered its rating on MCHP to “Neutral” from the earlier “Buy”, in a research note produced for clients November 06, 2020. In addition, there was an upgrade from Morgan Stanley on October 19, 2020. The rater changed MCHP from “an Equal-weight” to “an Overweight”.
Is Microchip Technology Incorporated [NASDAQ:MCHP] a Good Buy Right Now?
It should be noted that MCHP technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 88% Buy in the last week and compares with 100% Buy in the past month. Data from Microchip Technology Incorporated’s Trend Spotter indicated that the signals were Strongest. The stock current average is 1.72 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 1.83 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.92 million shares.
MCHP Price Performance
On Wall Street, Microchip Technology Incorporated [NASDAQ:MCHP] finished Tuesday’s session up 2.19% at $140.19. The stock went up to $140.34 at the same session while its lowest single day price was $137.29. In the last five days, it saw a rise of about 2.89%, Microchip Technology Incorporated shares gained by almost 1.51% since the beginning of the year. However, the share price has dropped to as low as -3.54% below its one year high. On 01/04/21, the company shares recorded $142.26, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $136.42. The company’s shares have inclined by 35.15% in the past year. The 50-day SMA achieved is $129.64 while the 200-day SMA is $105.36. Volume dropped to 1.89 million from 2.15 million in the previous session.
Microchip Technology Incorporated [MCHP] Valuation Measures
Notably, Microchip Technology Incorporated [MCHP] stock cannot be classified as a good candidate in the listing of underestimated low-priced Semiconductors companies to purchase soonest possible with the prevailing 12-month PE ratio of 59.73. The measure means the stock is exchanging at a premium as compared to the 32.75x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 6.91 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.64 which means MCHP serve an unattractive investment opportunity compared to its competitors.
MCHP Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 138.21 level, and in case of violation of this particular level, it will cause more drop to 136.22 level. On the upper level, 142.32 is still the key resistance. The stock may increase to the subsequent resistance at 141.26. The Relative Strength Index (RSI) pinned on the 14-day chart is 60.95, implying a neutral technical stance while the MACD stands at 0.70, meaning price will decrease in the next trading period. Percent R indicator moved to 37.83%, implying low price movement. Stochastic %K at 45.24% suggest selling the stock.
What is the short interest in Microchip Technology Incorporated?
Short interest in the Microchip Technology Incorporated stock has surged, increasing by 5.72 million shares to total 6.37 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 12.09 million, data from Yahoo Finance shows. The decrease of -89.8% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 2.71% of the overall float for the stock.
Microchip Technology Incorporated’s Biggest Shareholders: Who Owns Microchip Technology Incorporated [MCHP]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 28,210,947 shares or roughly 10.84% of the outstanding MCHP shares. This means their shares have increased by 206,553 from the 28,210,947 the investor reportedly held in its prior 13-F filing. With the conclusion of the purchase, Dodge & Cox updated stake is worth $2,788,849,588. Details in the latest 13F filings reveal that BlackRock Fund Advisors acquired their 2.89% stake valued at $1,837,297,968 while T. Rowe Price Associates, Inc. added theirs at $1,764,818,887. During the last quarter, BlackRock Fund Advisors raised 384,124 of its shares in Microchip Technology Incorporated while T. Rowe Price Associates, Inc. bought 14,945 shares. The Janus Capital Management LLC’s holdings currently number 10,991,759 shares at $1540934694.21. According to the firm’s last 13F report, SSgA Funds Management, Inc. shares in the company at filing stood at 9,873,962 shares, roughly $1,326,961,753.
MCHP Earnings Forecast For The Current Quarter
Microchip Technology Incorporated [MCHP] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $1.36B and an earnings per share of $1.58 for Dec 2020. Looking further ahead, the company is expected to report revenue of $1.38B at an EPS of $1.64 for Mar 2021. The estimates represent upside of 9.90% and 13.62% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
MCHP Earnings Estimates For The Current Year
For the financial year, Microchip Technology Incorporated [NASDAQ:MCHP] is expected to bring in revenue of $5.35B. The returns are nearly $80.0 million higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 6.27, higher than that of FY20 by $0.65. Estimates put this year’s earnings growth at 11.60%, 13.70% for the next, and at an annual 12.30% over the next 5-year period. As for sales, forecasts are for an increase of 1.50% in the current fiscal year and a further 9.90% over the following year.