Fintel reports that on September 20, 2023, Rosenblatt reiterated coverage of Microchip Technology (NASDAQ:MCHP) with a Buy recommendation.
Analyst Price Forecast Suggests 27.46% Upside
As of August 31, 2023, the average one-year price target for Microchip Technology is 99.14. The forecasts range from a low of 85.85 to a high of $115.50. The average price target represents an increase of 27.46% from its latest reported closing price of 77.78.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Microchip Technology is 8,467MM, a decrease of 3.39%. The projected annual non-GAAP EPS is 5.97.
Microchip Technology Declares $0.41 Dividend
On August 3, 2023 the company declared a regular quarterly dividend of $0.41 per share ($1.64 annualized). Shareholders of record as of August 22, 2023 received the payment on September 5, 2023. Previously, the company paid $0.38 per share.
At the current share price of $77.78 / share, the stock's dividend yield is 2.11%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.45%, the lowest has been 0.02%, and the highest has been 5.26%. The standard deviation of yields is 0.90 (n=236).
The current dividend yield is 0.37 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.37. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 1.23%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2147 funds or institutions reporting positions in Microchip Technology. This is a decrease of 4 owner(s) or 0.19% in the last quarter. Average portfolio weight of all funds dedicated to MCHP is 0.43%, an increase of 1.42%. Total shares owned by institutions decreased in the last three months by 2.36% to 584,362K shares. 
The put/call ratio of MCHP is 1.60, indicating a bearish outlook.
What are Other Shareholders Doing?
T. Rowe Price Investment Management holds 22,808K shares representing 4.19% ownership of the company. In it's prior filing, the firm reported owning 22,153K shares, representing an increase of 2.87%. The firm increased its portfolio allocation in MCHP by 4.60% over the last quarter.
Dodge & Cox holds 21,756K shares representing 4.00% ownership of the company. In it's prior filing, the firm reported owning 22,899K shares, representing a decrease of 5.26%. The firm decreased its portfolio allocation in MCHP by 0.51% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 17,083K shares representing 3.14% ownership of the company. In it's prior filing, the firm reported owning 16,957K shares, representing an increase of 0.74%. The firm decreased its portfolio allocation in MCHP by 0.60% over the last quarter.
Aristotle Capital Management holds 16,311K shares representing 3.00% ownership of the company. In it's prior filing, the firm reported owning 16,660K shares, representing a decrease of 2.14%. The firm increased its portfolio allocation in MCHP by 1.46% over the last quarter.
DODGX - Dodge & Cox Stock Fund holds 14,741K shares representing 2.71% ownership of the company. In it's prior filing, the firm reported owning 14,914K shares, representing a decrease of 1.17%. The firm increased its portfolio allocation in MCHP by 1.34% over the last quarter.
Microchip Technology Background Information
(This description is provided by the company.)
Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. The company's solutions serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
