Microchip stock: buy or sell?
September 20th, 2019
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications.
Should I buy Microchip stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. 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. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Microchip Technology stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Microchip Technology stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we collected 9 ratings published for MCHP stock in the last 30 days. The general sentiment of these ratings is bullish for MCHP stock, with 7 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-29||Wells Fargo & Co||n/a||Outperform|
|2019-6-25||Wells Fargo & Co||n/a||Outperform|
|2019-2-6||Needham & Company LLC||n/a||Buy|
|2019-1-24||Needham & Company LLC||Strong-Buy||Buy|
Microchip stock analysis
Microchip Technology closed yesterday at $90.45 and fell a fatal -2.21%.
Shares of Microchip Technology ended yesterday at $90.45 and fell a fatal -2.21%. On June MCHP price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. MCHP is retaking the upward trend marking a new rising bottom heading to break out over $96.74. Since SMA50d and SMA100d crossed up on Aug/23, MCHP price climbed $0.87 per share (0.97%).
Microchip shares plummed -4.79% this week, ending at $90.45.
Microchip stock just marked a top under its last top. Athought it's not concerning right now, investors should be aware as this could be a warning for future complications. It's important MCHP stock price keeps the level, and maybe bounce up from there forming a double bottom shape. Since price and SMA40w lines crossed up early June, MCHP climbed $10.75 (13.49%). Since SMA20w and SMA40w crossed up early April, MCHP price slid a -1.83%.
Microchip stock price history
Microchip stock went public on March 19th, 1993 with a price of $0.411. Since then, MCHP stock grew a 21,961.00%, with an average of 844.70% per year. If you had invested $1,000 in Microchip stock in 1993, it would worth $219,610.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Microchip stock historical price chart
MCHP stock reached 52-week highs on May at $100.49, and all-time highs 2018-06-08 with a price of 101.95.
Microchip stock price target is $104.40Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' MCHP stock price predictions in the hope that they will be met as they may be wrong and not met. We have 8 price forecasts for MCHP stock published in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-29||Wells Fargo & Co||Reiterates||$105.00||$115.00||9.5%|
|2019-6-25||Wells Fargo & Co||Initiates||n/a||$105.00||-|
|2019-2-6||Needham & Company LLC||Raises Target||$90.00||$100.00||11.1%|
|2019-1-24||Needham & Company LLC||Downgrades||$100.00||$90.00||-10%|
Financials and fundamental analysis
Earnings date and Earnings per ShareMicrochip Technology presented slightly good results for 2018-Q4 on February. Microchip Technology grew Earnings per Share (EPS) by 4.10%, beating experts estimates of $1.45. Microchip Technology posted $1.51.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Microchip annual turnover rocketed an astounding 16.81% to $3,980.80 million dollars from $3,407.80 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) appreciated a 1.59% to 6.42%. Microchip Technology presents anual results in March, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Microchip Technology TTM sales up to December 2018 were $5,022.00 and income $327.90 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Microchip Technology business evolution since March 2018: Annual sales up to December, compared to lastest yearly report, climbed a dazzling 26.16%. By contrast, profit margin (net income/sales) stayed constant at 6.42%.
|2013||$1,580 M||-||$127 M8.1%||-|
|2014||$1,930 M||22.15%||$395 M20.5%||210.29%|
|2015||$2,147 M||11.25%||$369 M17.2%||-6.65%|
|2016||$2,173 M||1.22%||$324 M14.9%||-12.16%|
|2017||$3,408 M||56.80%||$165 M4.8%||-49.22%|
|2018||$3,981 M||16.81%||$255 M6.4%||55.16%|
|TTM||$5,022 M||26.16%||$328 M6.5%||28.39%|
Quarterly financial resultsMicrochip Technology posted $1,374.70 M in sales for 2018-Q4, a -4.03% decline compared to previous quarter. Reported quarter earnings marked $49.20 million with a profit margin of 3.58%. Profit margin declined a -3.14% compared to previous quarter when profit margin was 6.72%. When comparing sales to same quarter last year, Microchip sales marked a super good gain and skyrocketed a 38.27%.
|2017-Q1||$903 M||-||$137 M15.2%||-|
|2017-Q2||$972 M||7.70%||$171 M17.5%||24.60%|
|2017-Q3||$1,012 M||4.11%||$189 M18.7%||10.88%|
|2017-Q4||$994 M||-1.77%||$-251 M-25.3%||-232.74%|
|2018-Q1||$1,002 M||0.81%||$147 M14.6%||-158.43%|
|2018-Q2||$1,213 M||20.97%||$36 M2.9%||-75.66%|
|2018-Q3||$1,433 M||18.14%||$96 M6.7%||169.75%|
|2018-Q4||$1,375 M||-4.03%||$49 M3.6%||-48.91%|
Microchip ownershipWhen you are planning to buy a stock, it's always worth to have a look its ownership structure.
Microchip shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.19% of all shares.
Bearish positions for MCHP stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Microchip:
|Market cap||$21.5 B||$42.6 B||$8.6 B||$15.4 B||$7.9 B|
|Total shares||238.0 M||369.4 M||369.3 M||271.3 M||410.5 M|
|Float shares||232.7 M||367.9 M||367.3 M||269.2 M||402.6 M|
|- Institutional holdings (%)||117.6%||92.5%||83.7%||100.0%||98.3%|
|- Insider holdings (%)||2.2%||0.3%||0.6%||0.7%||1.3%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$90.32 - $93.22|
|Average true range||$2.43|
|50d mov avg||$90.52|
|100d mov avg||$88.17|
|200d mov avg||$85.33|
Microchip performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Microchip, the comparison is made against Analog Devices, Cypress Semiconductor, Maxim Integrated Products, ON Semiconductor, Silicon Laboratories, STMicroelectronics and Texas Instruments.
|MXIMMaxim Integrated ...||-1.61%||6.97%||-0.94%|
Microchip competitorsWe picked a few stocks to conform a list of Microchip competitors to check if you are interested in investing in MCHP:
- Analog Devices (ADI)
- Cypress Semiconductor (CY)
- Maxim Integrated Products (MXIM)
- ON Semiconductor (ON)
- Silicon Laboratories (SLAB)
- STMicroelectronics (STM)
- Texas Instruments (TXN)
Latest Microchip stock news
- Seeking AlphaMicrochip: Undervalued On Microcontroller Growth PotentialJune 12, 2019
- Seeking AlphaMultiple Catalysts To Drive Microchip HigherApril 30, 2019
- Seeking AlphaMicrochip: Time To Buy This Company At A Decent ValuationFebruary 5, 2019
- InvestorPlace3 Big Stock Charts for Thursday: Masco, Ralph Lauren and Microchip TechnologyNovember 29, 2018
- Seeking AlphaMicrochip Looks Undervalued, But There Are Short-Term Challenges To ConsiderSeptember 15, 2018