Microchip Receives a Hold from Pacific Crest

By Ryan Adsit

Pacific Crest analyst Michael McConnell reiterated a Hold rating on Microchip (NASDAQ: MCHP) yesterday. The company’s shares opened today at $65.23, close to its 52-week high of $65.61.

McConnell noted:

“We believe Microchip’s relatively stable margin structure in its core microcontroller division limits earnings leverage relative to its peers.”

According to TipRanks.com, McConnell is a 4-star analyst with an average return of 8.2% and a 66.1% success rate. McConnell covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Silicon Laboratories, and Skyworks Solutions.

Currently, the analyst consensus on Microchip is Moderate Buy and the average price target is $69.29, representing a 6.2% upside.

In a report issued on November 4, Goldman Sachs also upgraded the stock to Hold with a $57 price target.

Microchip’s market cap is currently $13.38B and has a P/E ratio of 172.86. The company has a book value ratio of 5.2838.

Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2016, Steve Sanghi, the President of MCHP sold 28,771 shares for a total of $1,755,319.

Microchip Technology, Inc. develops and manufactures specialized semiconductor products. It engages primarily in the design, development, manufacture and marketing of semiconductor products as well as the licensing of Flash intellectual property. It operates through the Semiconductor Products and Technology Licensing segments. Its product portfolio comprises 8-bit, 16-bit, and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers, which feature on-board Flash memory technology. The company was founded on February 14, 1989 and is headquartered in Chandler, AZ.