Microchip Technology Incorporated (NASDAQ:MCHP) traded at $66.68 at close of the session on Wednesday, September 21, made an upward move of 2.00% on its previous day’s price.
Looking at the stock we see that its previous close was $65.37 and the beta (5Y monthly) reads 1.62 with the day’s price range being $65.09 – $66.79. The company has a trailing 12-month PE ratio of 23.97. In terms of its 52-week price range, MCHP has a high of $90.00 and a low of $54.33. The company’s stock has lost about -7.72% over that past 30 days.
Microchip Technology Incorporated has a market cap of $35.51 billion and is expected to release its quarterly earnings report on Nov 02, 2022 – Nov 07, 2022. With its Forward Dividend at 1.20 and a yield of 1.84%, the company’s investors could be anxious for the MCHP stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $1.44, with the EPS growth for the year raised at $5.67 for 2023 and $5.71 for next year. These figures represent 23.00% and 0.70% growth in EPS for the two years respectively.
Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $2.06 billion, with a low of $2.06 billion and a high of $2.08 billion. The median projection represents growth squeezing down to 25.10% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2023 is expected to hit $8.15 billion, or 19.50% up from figures reported last year.
There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the MCHP stock, short term indicators assign the stock an average of 50% Sell, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of 50% Sell.
Based on estimates by 25 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 7 have rated the Microchip Technology Incorporated (MCHP) stock as a Hold, while 16 rate it as a Buy. 2 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 0 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.
Looking further, we note that the PEG ratio for the MCHP stock currently stands at 2.61, and the current price level is 1.11% off its SMA20 and -0.68% from its 50-day simple moving average. The RSI (14) is pointing at 50.56 while the volatility over the past week is 3.73% and jumps to 3.26% over the past one month. The beta value is 1.61, while the average true range (ATR) is currently pointing at 2.32. The average price target for the stock over the next 12 months is $86.65, with the estimates having a low of $67.00 and a high of $125.00. These price ends are -0.48% and -87.46% off the current price level respectively, although investors could be excited at the prospect of a -25.22% if the MCHP share price touches on the median price of $83.50.
Let’s briefly compare Microchip Technology Incorporated (MCHP) stock to its peers. We find that current price change of 2.00% and -16.47% over the past 12 months for MCHP. Another of its peers Advanced Micro Devices Inc. (AMD) has gained 1.13% previous session, and was -25.90% down over the past year, while Applied Materials Inc. (AMAT) was also up 1.35% in the last session, while its price remained in the red at -34.98% over the same period. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at 0.46% and 0.45%, respectively, at close of the trading.
Coming back to Microchip Technology Incorporated (NASDAQ:MCHP), we note that the average 3-month trading volume was 4.53 million, while that of the preceding 10-day period stands at 4.86 million. Current shares outstanding are 553.80 million.
The insiders hold 2.07% of the company’s shares while institutions hold 95.40%. The data shows that short shares as of Aug 30, 2022, stood at 13.56 million at a short ratio of 2.89. This represents a 2.45% short interest in shares outstanding on Aug 30, 2022. Shares short rose in August from the previous month at 13.28 million. Investors should be excited about this stock as its upside potential is great, with current price pushing the stock -24.91% down in year-to-date price movement.