There is no doubt that Microchip Technology Incorporated (MCHP) ticks all the boxes.

Microchip Technology Incorporated (NASDAQ: MCHP) stock jumped 1.73% on Thursday to $80.03 against a previous-day closing price of $78.67. With 3.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.78 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $80.63 whereas the lowest price it dropped to was $78.42. The 52-week range on MCHP shows that it touched its highest point at $94.30 and its lowest point at $54.77 during that stretch. It currently has a 1-year price target of $97.20. With its current market cap of 43.74 billion, MCHP has annualized dividend of $1.64 while the current yield stands at 2.05%. Beta for the stock currently stands at 1.63.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MCHP was up-trending over the past week, with a rise of 1.18%, but this was down by -1.06% over a month. Three-month performance dropped to -7.63% while six-month performance fell -0.60%. The stock gained 26.71% in the past year, while it has gained 13.92% so far this year. A look at the trailing 12-month EPS for MCHP yields 4.32 with Next year EPS estimates of 6.14. For the next quarter, that number is 1.61. This implies an EPS growth rate of 76.80% for this year and 0.74% for next year. EPS is expected to grow by 12.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.90%.

Float and Shares Shorts:

At present, 545.10 million MCHP shares are outstanding with a float of 532.52 million shares on hand for trading. On Aug 30, 2023, short shares totaled 17.39 million, which was 3.19% higher than short shares on Jul 30, 2023. In addition to Mr. Stephen Sanghi as the firm’s Exec. Chair, Mr. Ganesh Moorthy serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 94.60% of MCHP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.94% of MCHP, in contrast to 34.26% held by mutual funds. Shares owned by individuals account for 2.12%. As the largest shareholder in MCHP with 11.84% of the stake, The Vanguard Group, Inc. holds 64,466,793 shares worth 64,466,793. A second-largest stockholder of MCHP, BlackRock Fund Advisors, holds 32,708,273 shares, controlling over 6.01% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in MCHP, holding 24,215,690 shares or 4.45% stake. With a 3.13% stake in MCHP, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 17,055,198 shares are owned by the mutual fund manager. The Dodge & Cox Stock Fund, which owns about 2.71% of MCHP stock, is the second-largest Mutual Fund holder. It holds 14,741,166 shares valued at 1.38 billion. Vanguard 500 Index Fund holds 2.41% of the stake in MCHP, owning 13,121,854 shares worth 1.23 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MCHP reported revenue of $1.96B and operating income of $684.40M. The EBITDA in the recently reported quarter was $943.30M and diluted EPS was $0.90.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MCHP since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MCHP analysts setting a high price target of $110.00 and a low target of $85.00, the average target price over the next 12 months is $97.65. Based on these targets, MCHP could surge 37.45% to reach the target high and rise by 6.21% to reach the target low. Reaching the average price target will result in a growth of 22.02% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, MCHP has a current ratio of $1.48, which is $1.48 over the trailing 12-months, while a dividend of $0.87 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and MCHP currently yields $1.85. In the past year, MCHP’s dividend yield has been $1.85, but when looking at the stock over the past five years, its yield has been $1.47. Accordingly, MCHP has a current buyback yield of $1.85. This was $1.85 for the TTM.

Summary of Insider Activity:

Insiders traded MCHP stock several times over the past three months with 6 Buys and 1 Sells. In these transactions, 15,487 shares were bought while 2,363 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 273,646 while 116,054 shares were sold.

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