Microchip stock: buy or sell?

MCHP stock price: $90.45 -2.21% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Shares of Microchip fell a fatal -2.21% and closed at $90.45. With Friday it's been 5 red days in a row.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean MCHP will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
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
2019-1-24Needham & Company LLCStrong-BuyBuy

Microchip stock analysis

Daily outlook

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%).

MCHP stock chart (daily)

Weekly outlook

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%.

MCHP stock chart (weekly)

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 $104.40

Predicting 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:
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-
2019-1-24Needham & Company LLCDowngrades$100.00$90.00-10%
(in average)$98.30$104.406.0%
Moving in a range from $115.00 and $90.00, the price prediction for Microchip stock is $104.40. In average, analysts' outlook on MCHP price forecast is positive, improving the target by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Microchip 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.
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 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%.

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 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%.
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 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:

MCHPADICYMXIMON
Market cap$21.5 B$42.6 B$8.6 B$15.4 B$7.9 B
Total shares238.0 M369.4 M369.3 M271.3 M410.5 M
Float shares232.7 M367.9 M367.3 M269.2 M402.6 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 selling0.0%0.0%0.0%0.0%0.0%

Microchip summary

Friday, September 20th, 2019
Open$92.44
Close$90.45
Day range$90.32 - $93.22
Previous close$92.49
Session gain-2.21%
Average true range$2.43
50d mov avg$90.52
100d mov avg$88.17
200d mov avg$85.33
Daily patternlb02a
Weekly pattern lt01a

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, the comparison is made against Analog Devices, Cypress Semiconductor, Maxim Integrated Products, ON Semiconductor, Silicon Laboratories, STMicroelectronics and Texas Instruments.
Stock3m6m12m
MCHPMicrochip Technol...6.73%6.79%11.23%
ADIAnalog Devices1.97%8.53%24.56%
CYCypress Semicondu...5.35%57.45%49.84%
MXIMMaxim Integrated ...-1.61%6.97%-0.94%
ONON Semiconductor-0.82%-10.72%0.89%
SLABSilicon Laborator...15.65%39.03%19.06%
STMSTMicroelectronic...13.88%19.23%3.99%
TXNTexas Instruments13.45%16.94%18.46%

Microchip competitors

We picked a few stocks to conform a list of Microchip competitors to check if you are interested in investing in MCHP:

Latest Microchip stock news