Price Don’t Lie: What Next for Microchip Technology Inc. Stock After Reaching 52-Week High?

Price Don't Lie: What Next for Microchip Technology Inc. Stock After Reaching 52 Week High?

The stock of Microchip Technology Inc. (NASDAQ:MCHP) hit a new 52-week high and has $71.27 target or 8.00% above today’s $65.99 share price. The 6 months bullish chart indicates low risk for the $14.25B company. The 1-year high was reported on Nov, 28 by Barchart.com. If the $71.27 price target is reached, the company will be worth $1.14B more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 1.30M shares traded hands. Microchip Technology Inc. (NASDAQ:MCHP) has risen 33.31% since April 25, 2016 and is uptrending. It has outperformed by 27.29% the S&P500.

Analysts await Microchip Technology Inc. (NASDAQ:MCHP) to report earnings on February, 1. They expect $0.81 earnings per share, up 32.79% or $0.20 from last year’s $0.61 per share. MCHP’s profit will be $174.91M for 20.37 P/E if the $0.81 EPS becomes a reality. After $0.90 actual earnings per share reported by Microchip Technology Inc. for the previous quarter, Wall Street now forecasts -10.00% negative EPS growth.

Microchip Technology Inc. (NASDAQ:MCHP) Ratings Coverage

Out of 12 analysts covering Microchip Technology (NASDAQ:MCHP), 10 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 83% are positive. Microchip Technology has been the topic of 22 analyst reports since August 5, 2015 according to StockzIntelligence Inc. As per Tuesday, April 5, the company rating was maintained by Goldman Sachs. Morgan Stanley upgraded Microchip Technology Inc. (NASDAQ:MCHP) rating on Tuesday, January 19. Morgan Stanley has “Overweight” rating and $55 price target. The rating was initiated by Mizuho with “Neutral” on Friday, September 30. JP Morgan upgraded Microchip Technology Inc. (NASDAQ:MCHP) on Tuesday, September 8 to “Overweight” rating. The company was upgraded on Monday, January 18 by Needham. The rating was maintained by Citigroup with “Buy” on Tuesday, August 9. The rating was maintained by JP Morgan with “Overweight” on Tuesday, August 9. The stock of Microchip Technology Inc. (NASDAQ:MCHP) earned “Buy” rating by Drexel Hamilton on Monday, August 24. Jefferies maintained Microchip Technology Inc. (NASDAQ:MCHP) on Saturday, August 8 with “Buy” rating. As per Tuesday, May 17, the company rating was initiated by CLSA.

According to Zacks Investment Research, “Microchip Technology, Inc. develops and manufactures specialized semiconductor products used by its customers for a wide variety of embedded control applications. Its product portfolio comprises microcontrollers; application-specific standard products; and related mixed-signal and memory products. The company markets its products to the consumer, automotive, office automation, communications and industrial markets.”

Insitutional Activity: The institutional sentiment decreased to 0.93 in 2016 Q2. Its down 0.64, from 1.57 in 2016Q1. The ratio fall, as 30 funds sold all Microchip Technology Inc. shares owned while 163 reduced positions. 67 funds bought stakes while 236 increased positions. They now own 214.90 million shares or 2.05% more from 210.57 million shares in 2016Q1.
Mizuho Tru And Bk Commerce Limited accumulated 0.06% or 358,493 shares. The Pennsylvania-based Federated Invsts Inc Pa has invested 0% in Microchip Technology Inc. (NASDAQ:MCHP). Old National Savings Bank In holds 30,769 shares or 0.09% of its portfolio. World Asset Mgmt Incorporated last reported 0.04% of its portfolio in the stock. Balyasny Asset Mgmt Ltd Limited Liability Company has 162,535 shares for 0.05% of their US portfolio. Sawtooth Asset Mngmt holds 9,732 shares or 0.27% of its portfolio. Tokio Marine Asset Mngmt last reported 7,109 shares in the company. Cape Ann Fincl Bank accumulated 4,075 shares or 0.28% of the stock. Moreover, Blackrock Fund Advisors has 0.05% invested in Microchip Technology Inc. (NASDAQ:MCHP) for 4.18M shares. The New York-based Clinton has invested 0.13% in Microchip Technology Inc. (NASDAQ:MCHP). The Connecticut-based Paloma Prtnrs Mngmt has invested 0.06% in Microchip Technology Inc. (NASDAQ:MCHP). Morgan Stanley holds 0.01% of its portfolio in Microchip Technology Inc. (NASDAQ:MCHP) for 773,950 shares. Louisiana State Employees Retirement System last reported 14,100 shares in the company. Meiji Yasuda Life Insur holds 19,621 shares or 0.16% of its portfolio. Ing Groep Nv holds 7,549 shares or 0.01% of its portfolio.

Insider Transactions: Since May 31, 2016, the stock had 0 insider purchases, and 15 sales for $14.94 million net activity. $2.32M worth of Microchip Technology Inc. (NASDAQ:MCHP) shares were sold by SANGHI STEVE. The insider SIMONCIC RICHARD J sold 3,048 shares worth $185,776. DREHOBL STEPHEN V had sold 3,494 shares worth $227,669. Another trade for 1,500 shares valued at $90,751 was sold by MEYERCORD WADE F. 3,039 Microchip Technology Inc. (NASDAQ:MCHP) shares with value of $185,227 were sold by LITTLE MITCHELL R. 2,461 shares were sold by Bjornholt James Eric, worth $149,998. MOORTHY GANESH had sold 10,000 shares worth $516,905 on Wednesday, June 1.

Another recent and important Microchip Technology Inc. (NASDAQ:MCHP) news was published by Forbes.com which published an article titled: “Mattel Becomes #1 Most Shorted Nasdaq 100 Component, Replacing Microchip …” on November 28, 2016.

MCHP Company Profile

Microchip Technology Incorporated, incorporated on February 14, 1989, is engaged in developing, manufacturing and selling specialized semiconductor products used by its clients for a range of embedded control applications. The Firm operates through two divisions: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, makes and markets microcontrollers, development tools and analog, interface, mixed signal and timing products. The Company’s functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance.

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