The stock of Microchip Technology, Inc (MCHP) has seen a 5.04% increase in the past week, with a -1.88% drop in the past month, and a -23.61% decrease in the past quarter. The volatility ratio for the week is 2.66%, and the volatility levels for the past 30 days are at 3.01% for MCHP. The simple moving average for the past 20 days is 1.60% for MCHP’s stock, with a -27.06% simple moving average for the past 200 days.
Is It Worth Investing in Microchip Technology, Inc (NASDAQ: MCHP) Right Now?
The price-to-earnings ratio for Microchip Technology, Inc (NASDAQ: MCHP) is above average at 40.43x. The 36-month beta value for MCHP is also noteworthy at 1.50. There are mixed opinions on the stock, with 13 analysts rating it as a “buy,” 5 rating it as “overweight,” 7 rating it as “hold,” and 0 rating it as “sell.”
The public float for MCHP is 525.59M, and at present, short sellers hold a 6.45% of that float. The average trading volume of MCHP on January 20, 2025 was 7.69M shares.
MCHP) stock’s latest price update
Microchip Technology, Inc (NASDAQ: MCHP)’s stock price has plunge by 3.17relation to previous closing price of 56.19. Nevertheless, the company has seen a 5.04% surge in its stock price over the last five trading sessions. globenewswire.com reported 2025-01-16 that Microchip’s PCI100x devices deliver high performance and cost efficiency for any application where accelerated or specialized computing is used Microchip’s PCI100x devices deliver high performance and cost efficiency for any application where accelerated or specialized computing is used
Analysts’ Opinion of MCHP
Many brokerage firms have already submitted their reports for MCHP stocks, with BofA Securities repeating the rating for MCHP by listing it as a “Underperform.” The predicted price for MCHP in the upcoming period, according to BofA Securities is $65 based on the research report published on December 16, 2024 of the previous year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see MCHP reach a price target of $70, previously predicting the price at $80. The rating they have provided for MCHP stocks is “Hold” according to the report published on November 06th, 2024.
Truist gave a rating of “Hold” to MCHP, setting the target price at $80 in the report published on September 23rd of the previous year.
MCHP Trading at -6.84% 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 -42.36% of loss for the given period.
Volatility was left at 3.01%, however, over the last 30 days, the volatility rate increased by 2.66%, as shares sank -0.55% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -22.16% lower at present.
During the last 5 trading sessions, MCHP rose by +5.04%, which changed the moving average for the period of 200-days by -34.11% in comparison to the 20-day moving average, which settled at $57.06. In addition, Microchip Technology, Inc saw 1.08% 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 Bjornholt James Eric, who sale 4,688 shares at the price of $67.75 back on Nov 25 ’24. After this action, Bjornholt James Eric now owns 33,272 shares of Microchip Technology, Inc, valued at $317,612 using the latest closing price.
Bjornholt James Eric, the Officer of Microchip Technology, Inc, proposed sale 4,688 shares at $67.65 during a trade that took place back on Nov 25 ’24, which means that Bjornholt James Eric is holding shares at $317,121 based on the most recent closing price.
Stock Fundamentals for MCHP
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.58 for the gross margin
The net margin for Microchip Technology, Inc stands at 0.14. The total capital return value is set at 0.09. Equity return is now at value 11.80, with 4.85 for asset returns.
Based on Microchip Technology, Inc (MCHP), the company’s capital structure generated 0.51 points at debt to capital in total, while cash flow to debt ratio is standing at 0.26. The debt to equity ratio resting at 1.03. The interest coverage ratio of the stock is 5.12.
Currently, EBITDA for the company is 3.44 billion with net debt to EBITDA at 3.16. When we switch over and look at the enterprise to sales, we see a ratio of 6.79. The receivables turnover for the company is 5.26for trailing twelve months and the total asset turnover is 0.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.88.
Conclusion
In summary, Microchip Technology, Inc (MCHP) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
