Microchip stock: buy or sell?

MCHP stock price: $109.41 0.54% At close on January 17th, 2020

Updated on:
January 17th, 2020

5

Microchip stepped up 0.54% on January 17th to $109.41 after marking all time highs on Tuesday.

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications.

Should I buy Microchip stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with Microchip Technology stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Microchip stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 8 ratings published for MCHP stock in the last 30 days.

The general sentiment of these ratings is bullish for MCHP stock, with 6 positive ratings.
Is MCHP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-7Rosenblatt Securitiesn/aBuy
2019-7-9Longbow Researchn/aNeutral
2019-7-29Wells Fargo & Con/aOutperform
2019-6-25Wells Fargo & Con/aOutperform
2019-2-7Citigroupn/aBuy
2019-2-6Needham & Company LLCn/aBuy
2019-2-22Cowenn/aMarket Perform
2019-2-11Rosenblatt Securitiesn/aBuy

Microchip stock analysis

Daily outlook

Microchip stepped up 0.54% on January 17th to $109.41 after reaching all time highs on Tuesday.

After several days of continuous rises in past weeks, Microchip stepped up 0.54% to $109.41. MCHP is retaking the upward trend marking a new rising bottom heading to break out over $112.47. On December MCHP price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On Tuesday, MCHP hit a new all time high, pushing higher than on Monday tops. Check different trading setups that use ATHs as triggers.

MCHP stock chart (daily)

Weekly outlook

Microchip shares set new all time highs again this week, setting highs to $112.47. Shares closed at $109.41 and depreciated -1.28% during the week. Last week MCHP boosted a cool 5.04% in just one week.

MCHP shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom last week, MCHP climbed unceasignly breaking out to new all time highs. Since early June 2019 when MCHP stock price broke up the SMA40w line, it gained $30.02 (37.81%). Early April, SMA20w and SMA40w crossed up triggering a rise of 19.22%.

MCHP stock chart (weekly)

Microchip stock price history

Microchip IPO was on March 19th, 1993 at $0.41 per share1. Since then, MCHP stock surged a 26,585.40%, with an average of 1,022.50% per year. If you had invested right after MCHP's IPO a $1,000 in Microchip stock in 1993, it would worth $265,854.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Microchip stock historical price chart

MCHP stock reached all-time highs on Tuesday with a price of $112.47.

Microchip stock price target is $106.40

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 7 price targets for MCHP stock:
MCHP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-7Rosenblatt SecuritiesReiteratesn/a$115.00-
2019-7-29Wells Fargo & CoReiterates$105.00$115.009.5%
2019-6-25Wells Fargo & CoInitiatesn/a$105.00-
2019-2-7CitigroupReiteratesn/a$105.00-
2019-2-6Needham & Company LLCRaises Target$90.00$100.0011.1%
2019-2-22CowenInitiatesn/a$90.00-
2019-2-11Rosenblatt SecuritiesReiteratesn/a$115.00-
(in average)$97.50$106.409.0%
Moving in a range from $115.00 and $90.00, the price forecast for MCHP stock is $106.40. In average, analysts' outlook on MCHP price target is positive, upgrading the target by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Microchip Technology reported its latest financial data, posting a tiny climb for the Earnings per Share (EPS). Analyst expected $1.45 per share, but Microchip Technology posted $1.51.
MCHP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.82n/a
2017-Q2-n/a0.73n/a
2017-Q32017-11-061.351.414.4%
2017-Q42018-02-061.351.360.7%
2018-Q12018-05-081.271.334.7%
2018-Q22018-08-091.41.528.6%
2018-Q32018-11-071.651.681.8%
2018-Q42019-02-051.451.514.1%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Microchip annual sales boosted an amazing 16.81% to $3,980.80 million USD from $3,407.80 marked in 2017. When comparing 2018 vs 2017, improving that, profit margin (that is, the net income divided by revenues) gained a 1.59% to 6.42%.

To have an updated view of the financial situation of Microchip Technology, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Microchip Technology TTM sales up to December 2018 were $5,022.00 and income was $327.90 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Microchip business evolution since March 2018: Annual revenues up to December, compared to lastest yearly report, rocketed a dazzling 26.16%. Regarding profit margin, Microchip Technology stayed stable 0.11% to 6.42%

MCHP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,580 M-$127 M8.1%-
2014$1,930 M22.15%$395 M20.5%210.29%
2015$2,147 M11.25%$369 M17.2%-6.65%
2016$2,173 M1.22%$324 M14.9%-12.16%
2017$3,408 M56.80%$165 M4.8%-49.22%
2018$3,981 M16.81%$255 M6.4%55.16%
TTM $5,022 M26.16%$328 M6.5%28.39%

Quarterly financial results

Microchip Technology reported $1,374.70 million in sales for 2018-Q4, a -4.03% decline compared to previous quarter. Reported quarter earnings marked $49.20 M with a profit margin of 3.58%. Profit margin decreased a -3.14% compared to previous quarter when profit margin was 6.72%. When comparing sales to same quarter last year, Microchip sales marked an extraordinary increase and climbed a 38.27%.
MCHP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$903 M-$137 M15.2%-
2017-Q2$972 M7.70%$171 M17.5%24.60%
2017-Q3$1,012 M4.11%$189 M18.7%10.88%
2017-Q4$994 M-1.77%$-251 M-25.3%-232.74%
2018-Q1$1,002 M0.81%$147 M14.6%-158.43%
2018-Q2$1,213 M20.97%$36 M2.9%-75.66%
2018-Q3$1,433 M18.14%$96 M6.7%169.75%
2018-Q4$1,375 M-4.03%$49 M3.6%-48.91%

Microchip ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Microchip Technology shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.20% of all shares.

Bearish positions for MCHP stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

MCHP
Market cap$26.1 B
Total shares239.0 M
Float shares233.6 M
  - Institutional holdings (%)110.3%
  - Insider holdings (%)2.2%
Shares in short selling0.0%

Microchip summary

Friday, January 17th, 2020
Open$109.08
Close$109.41
Day range$108.12 - $109.97
Previous close$108.82
Session gain0.54%
Average true range$2.50
50d mov avg$100.46
100d mov avg$96.46
200d mov avg$92.60
Daily patternlb02a
Weekly pattern lb03c

Microchip performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Microchip Technology, the benchmark is made against .
Stock3m6m12m
MCHPMicrochip Technol...15.62%19.48%43.26%

Microchip competitors

Unfortunately, we could not find any public company that could be defined as Microchip Technology competitor. This doesn't mean Microchip Technology does not have any competitor in the market, it's just we could not detected it.

    Latest Microchip stock news