Microchip Technology (NASDAQ:MCHP) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a note issued to investors on Thursday, American Banking News reports. The firm currently has a $48.00 target price on the stock. Zacks‘ price target suggests a potential upside of 20.15% from the company’s current price.
Zacks‘ analyst wrote, “Microchip reported stellar second quarter fiscal 2014 results with record revenues and adjusted earnings per share. The company is one of the fastest growing providers of 16-bit and 32-bit microcontrollers. The quality and diversity of products make Microchip one of the better-positioned companies in the semiconductor universe. The company is also gaining significant market share with continued new product innovations and customer engagements. Going forward, Microchip anticipates healthy bookings and robust business driven by new design wins and applications. However, an uncertain macroeconomic environment could hamper the growth momentum to some extent. Nevertheless, we are changing our long-term recommendation for Microchip from Neutral to Outperform as we expect it to perform well above the broader market. “
Microchip Technology (NASDAQ:MCHP) traded up 9.24% during mid-day trading on Thursday, hitting $43.64. 5,363,911 shares of the company’s stock traded hands. Microchip Technology has a one year low of $28.92 and a one year high of $41.78. The stock’s 50-day moving average is $39.90 and its 200-day moving average is $38.46. The company has a market cap of $8.610 billion and a price-to-earnings ratio of 65.60.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.63 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.60 by $0.03. The company had revenue of $492.67 million for the quarter, compared to the consensus estimate of $481.50 million. During the same quarter last year, the company posted $0.48 earnings per share. Microchip Technology’s revenue was up 28.5% compared to the same quarter last year. Analysts expect that Microchip Technology will post $2.36 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Thursday, December 5th. Shareholders of record on Thursday, November 21st will be given a dividend of $0.35 per share. This represents a $1.42 dividend on an annualized basis and a yield of 3.55%.
Other equities research analysts have also recently issued reports about the stock. Analysts at Credit Suisse raised their price target on shares of Microchip Technology to $48.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Separately, analysts at Mizuho upgraded shares of Microchip Technology from a “neutral” rating to a “buy” rating in a research note to investors on Thursday. They now have a $47.00 price target on the stock, up previously from $43.00. Finally, analysts at Goldman Sachs Group Inc. upgraded shares of Microchip Technology from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday, September 24th. They now have a $46.00 price target on the stock, up previously from $42.00. Four equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $44.20.
Microchip Technology Incorporated develops and manufactures specialized semiconductor products used by its customers for a range of embedded control applications.
To view Zacks’ full report, visit www.zacks.com
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