Microchip stock: buy or sell?
January 17th, 2020
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:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|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|
Microchip stock analysis
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.
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%.
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 $106.40How 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:
|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%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%
|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 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%.
|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 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:
|Market cap||$26.1 B|
|Total shares||239.0 M|
|Float shares||233.6 M|
|- Institutional holdings (%)||110.3%|
|- Insider holdings (%)||2.2%|
|Shares in short selling||0.0%|
|Friday, January 17th, 2020|
|Day range||$108.12 - $109.97|
|Average true range||$2.50|
|50d mov avg||$100.46|
|100d mov avg||$96.46|
|200d mov avg||$92.60|
Microchip performancePerformance 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 .
Microchip competitorsUnfortunately, 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
- 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