MCHP stock: buy or sell?
Nov 24th, 2020
MCHP stock brief
- Microchip Technology inched a 1.47% after making new highs last Friday
- It's been 4 consecutive sessions in red for Microchip Technology, gaining a 4.74%
- Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia.
Should I buy Microchip Technology stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MCHP stock a buy?
In the current situation of Microchip Technology there is not any eligible buy setup. This doesn't mean we expect a selloff for $MCHP in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems
Should I sell Microchip Technology stock?
Do you know when is it time to sell Microchip Technology?. Trading strategies allow us to avoid impetuous decisions based on our personal sentiments or the buzz surrounding the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups should not be used for selling short Microchip Technology stock
As a rule of thumb, you must never keep an investment that generates losses greater than those expected by the time of the buy. The moment to sell shares must always be ruled by the stop-loss (automatic or manual)
Is it time to sell Microchip Technology stock?
Currently, Microchip Technology stock doesn't match any of our preferred sell setups, so if you own Microchip Technology shares and your operation is in profit probably is not time to sell now
Microchip Technology ratings
In the last month, 9 ratings were published for Microchip Technology. General sentiment is bullish, with 6 out of 9 posting positive outlooks
|Nov 6th, 2020|
|B. Riley|| |
|BMO Capital Markets||Buy|
|Rosenblatt Securities|| |
|Smith Barney Citigroup|| |
Microchip Technology stock analysis
Microchip Technology stock started an uptrend last September, and grew a gorgeous 40.22%. Rising tops and bottoms can be seen easily on a chart and how price provided very few buy points on the breakouts. Latest pullback was in late October, when price bounced at $102.05. On November 5, Microchip Technology broke out above its last top ($116.22) offering a good entry point that resulted in a 14.92% profit
$MCHP at Highs
Last Friday, Microchip Technology marked new all-time highs (ATH) again at $135.29. Previous ATHs were on November 9
Supports and resistances
Price is at all-time highs and there are not upper resistance levels.
The current supports are:
Relative strength index
The RSI dropped below the overbought level of 70 on November 10 after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 69.19
Microchip Technology stock price history
Microchip Technology went public on Mar 19th, 1993 at $0.40 per share1. Since then, MCHP stock has risen by 33,290.00%, with an average of 1,232.96% per year. An investment of thousand dollars on the IPO would be valued $333,900.00 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Microchip Technology stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions post their price estimates based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new fundamental information by the company, and usually. Again, these estimates are not direct recommendations for individual investors and should not be followed blindly.
Averaging all price targets exposed below, the estimated price for Microchip Technology stock is $138.00. Microchip Technology closed at $133.56 on Tuesday, so the target price is expecting an increase by 3.32%.
|Brokerage firm||Price target|
|Nov 6th, 2020|
|B. Riley||$130.00 → $145.00|
|BMO Capital Markets||$118.00 → $130.00|
|Cowen||$102.00 → $125.00|
|KeyCorp||$115.00 → $140.00|
|Mizuho||$128.00 → $134.00|
|Morgan Stanley||$131.00 → $140.00|
|Raymond James||$125.00 → $140.00|
|Rosenblatt Securities||$130.00 → $150.00|
|Smith Barney Citigroup||Not available|
Earnings and financials
On November 5, Microchip Technology ($MCHP) had the quarterly earnings event and presented the fiscal second-quarter report. MCHP topped consensus earnings estimates and reported Earnings per Share of $1.56, that is a 9.09% improvement compared to the previous estimates of $1.43. Accordingly, reported revenues were $1.3 billion versus estimates of $1.3 billion.For comparison, the EPS for the same quarter last year was $1.43, so current EPS is a gain of 9.09%. Looking at revenues, figures only moved compared to $13.4B same quarter a year ago.
MCHP ($MCHP) will host the quarterly earnings call next February. Wall Street forecasts an earnings a share of $1.58, compared to previous quarter that was $1.56.
Microchip Technology competitors
Microchip Technology belongs to the Semiconductors industry, where it has 47 industry peers.
The following are Microchip Technology most relevant competitors:
|Company||Market cap||Rating||Bullish ratings1|
|Microchip Technology ($MCHP)||$34.3B||Buy||6|
|Taiwan Semiconductor ($TSM)||$419.8B||Neutral||0|
|Texas Instruments ($TXN)||$144.8B||Neutral||0|
1 In the last 30 days.
Microchip Technology performance
To better understand Microchip Technology stock performance you must compare its gains with other related stocks in same sector or industry.. For Microchip Technology, the benchmark is made against Taiwan Semiconductor, NVIDIA, Intel, Qualcomm, Broadcom and Texas Instruments.
|Microchip Technology ($MCHP)||22.20%||22.50%||40.50%|
|Taiwan Semiconductor ($TSM)||12.50%||21.40%||93.10%|
|Texas Instruments ($TXN)||7.00%||12.20%||35.60%|
Disclaimer:The thoughts expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for education motives only
|Tuesday, November 24th, 2020|
|Day range||$131.03 - $134.64|
|Average true range||$6.61|
|50d mov avg||$111.62|
|100d mov avg||$107.87|
|200d mov avg||$97.62|
|Earnings date||February 2nd, 2021|