The stock price of Microchip Technology, Inc. (NASDAQ: MCHP) has jumped by 2.12 compared to previous close of 89.46. Despite this, the company has seen a fall of -2.39% in its stock price over the last five trading days. Seeking Alpha reported 2024-05-04 that The 4 Factor Dividend Growth Strategy – Minor Turbulence In April
Is It Worth Investing in Microchip Technology, Inc. (NASDAQ: MCHP) Right Now?
Microchip Technology, Inc. (NASDAQ: MCHP) has a price-to-earnings ratio that is above its average at 21.35x. The stock has a 36-month beta value of 1.55. Opinions on the stock are mixed, with 6 analysts rating it as a “buy,” 6 as “overweight,” 5 as “hold,” and 0 as “sell.”
The public float for MCHP is 528.99M, and at present, short sellers hold a 4.66% of that float. On May 06, 2024, the average trading volume of MCHP was 5.55M shares.
MCHP’s Market Performance
MCHP stock saw an increase of -2.39% in the past week, with a monthly gain of 5.91% and a quarterly increase of 8.39%. The volatility ratio for the week is 2.65%, and the volatility levels for the last 30 days are 2.76% for Microchip Technology, Inc. (MCHP). The simple moving average for the last 20 days is 3.61% for MCHP’s stock, with a simple moving average of 8.83% for the last 200 days.
Analysts’ Opinion of MCHP
Many brokerage firms have already submitted their reports for MCHP stocks, with Evercore ISI repeating the rating for MCHP by listing it as a “Outperform.” The predicted price for MCHP in the upcoming period, according to Evercore ISI is $106 based on the research report published on April 16, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see MCHP reach a price target of $80, previously predicting the price at $75. The rating they have provided for MCHP stocks is “Market Perform” according to the report published on February 02nd, 2024.
Wolfe Research gave a rating of “Outperform” to MCHP, setting the target price at $105 in the report published on January 18th of the current year.
MCHP Trading at 4.10% from the 50-Day Moving Average
After a stumble in the market that brought MCHP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.46% of loss for the given period.
Volatility was left at 2.76%, however, over the last 30 days, the volatility rate increased by 2.65%, as shares surge +4.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.89% upper at present.
During the last 5 trading sessions, MCHP fell by -2.39%, which changed the moving average for the period of 200-days by -0.40% in comparison to the 20-day moving average, which settled at $88.37. In addition, Microchip Technology, Inc. saw 1.31% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MCHP starting from SANGHI STEVE, who sale 36,443 shares at the price of $93.10 back on Mar 07 ’24. After this action, SANGHI STEVE now owns 10,090,421 shares of Microchip Technology, Inc., valued at $3,392,789 using the latest closing price.
Johnson Karlton D, the Director of Microchip Technology, Inc., sale 92 shares at $86.88 during a trade that took place back on Mar 06 ’24, which means that Johnson Karlton D is holding 1,697 shares at $7,993 based on the most recent closing price.
Stock Fundamentals for MCHP
Current profitability levels for the company are sitting at:
- 0.37 for the present operating margin
- 0.67 for the gross margin
The net margin for Microchip Technology, Inc. stands at 0.28. The total capital return value is set at 0.25. Equity return is now at value 35.19, with 14.61 for asset returns.
Based on Microchip Technology, Inc. (MCHP), the company’s capital structure generated 0.45 points at debt to capital in total, while cash flow to debt ratio is standing at 0.55. The debt to equity ratio resting at 0.81. The interest coverage ratio of the stock is -659.48.
Currently, EBITDA for the company is 3.78 billion with net debt to EBITDA at 1.53. When we switch over and look at the enterprise to sales, we see a ratio of 6.42. The receivables turnover for the company is 6.11for trailing twelve months and the total asset turnover is 0.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.98.
Conclusion
To sum up, Microchip Technology, Inc. (MCHP) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
