Is Microchip Technology Stock a Good Investment?
Microchip Technology Investment Advice | MCHP |
- Examine Microchip Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Microchip Technology's leadership team and their track record. Good management can help Microchip Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Microchip Technology's business and its evolving consumer preferences.
- Compare Microchip Technology's performance and market position to its competitors. Analyze how Microchip Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Microchip Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Microchip Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Microchip Technology stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Microchip Technology is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Microchip Technology Stock
Researching Microchip Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 22nd of November 2024. Microchip Technology had 2:1 split on the 13th of October 2021.
To determine if Microchip Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Microchip Technology's research are outlined below:
| Microchip Technology generated a negative expected return over the last 90 days | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Can ON Semiconductors Expanding Clientele Push the Stock Higher |
Microchip Technology Quarterly Cost Of Revenue |
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Microchip Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Microchip Technology. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Microchip Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 2nd of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Microchip Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Microchip Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-08-06 | 2009-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2009-05-07 | 2009-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2004-04-22 | 2004-03-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2004-01-22 | 2003-12-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2002-07-17 | 2002-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2001-10-24 | 2001-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2001-04-23 | 2001-03-31 | 0.07 | 0.06 | -0.01 | 14 | ||
2000-07-13 | 2000-06-30 | 0.09 | 0.1 | 0.01 | 11 |
Know Microchip Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Microchip Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Microchip Technology backward and forwards among themselves. Microchip Technology's institutional investor refers to the entity that pools money to purchase Microchip Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ameriprise Financial Inc | 2024-06-30 | 7.8 M | Amundi | 2024-06-30 | 7.6 M | Boston Partners Global Investors, Inc | 2024-06-30 | 7.5 M | Norges Bank | 2024-06-30 | 6.8 M | Northern Trust Corp | 2024-09-30 | 6.6 M | Van Eck Associates Corporation | 2024-06-30 | 6.4 M | Goldman Sachs Group Inc | 2024-06-30 | 5.9 M | Barclays Plc | 2024-06-30 | 5.3 M | Wellington Management Company Llp | 2024-06-30 | 4.9 M | Vanguard Group Inc | 2024-09-30 | 68.3 M | Blackrock Inc | 2024-06-30 | 45.7 M |
Microchip Technology's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 34.97 B.Market Cap |
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Microchip Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.30 | 0.31 | |
| Return On Capital Employed | 0.19 | 0.17 | |
| Return On Assets | 0.12 | 0.10 | |
| Return On Equity | 0.29 | 0.30 |
Determining Microchip Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Microchip Technology is a good buy. For example, gross profit margin measures Microchip Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Microchip Technology's profitability and make more informed investment decisions.
Evaluate Microchip Technology's management efficiency
Microchip Technology has return on total asset (ROA) of 0.0441 % which means that it generated a profit of $0.0441 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.118 %, meaning that it created $0.118 on every $100 dollars invested by stockholders. Microchip Technology's management efficiency ratios could be used to measure how well Microchip Technology manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Microchip Technology's Return On Tangible Assets are relatively stable compared to the past year. As of 11/21/2024, Return On Equity is likely to grow to 0.30, while Return On Capital Employed is likely to drop 0.17. At this time, Microchip Technology's Total Current Liabilities is relatively stable compared to the past year. As of 11/21/2024, Liabilities And Stockholders Equity is likely to grow to about 16.7 B, while Non Current Liabilities Other is likely to drop slightly above 581 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.28 | 12.90 | |
| Tangible Book Value Per Share | (5.16) | (4.91) | |
| Enterprise Value Over EBITDA | 15.81 | 12.69 | |
| Price Book Value Ratio | 7.31 | 3.85 | |
| Enterprise Value Multiple | 15.81 | 12.69 | |
| Price Fair Value | 7.31 | 3.85 | |
| Enterprise Value | 22.3 B | 23.5 B |
Examining the leadership quality of Microchip Technology offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Dividend Yield 0.0281 | Forward Dividend Yield 0.0281 | Forward Dividend Rate 1.82 | Beta 1.526 |
Basic technical analysis of Microchip Stock
As of the 21st of November, Microchip Technology secures the Mean Deviation of 1.78, risk adjusted performance of (0.09), and Standard Deviation of 2.28. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Microchip Technology, as well as the relationship between them.Microchip Technology's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Microchip Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Microchip Technology's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Microchip Technology insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ganesh Moorthy over a month ago Acquisition by Ganesh Moorthy of 9754 shares of Microchip Technology subject to Rule 16b-3 | ||
Ganesh Moorthy over six months ago Disposition of 6402 shares by Ganesh Moorthy of Microchip Technology at 82.51 subject to Rule 16b-3 | ||
Richard Simoncic over a year ago Exercise or conversion by Richard Simoncic of 3708 shares of Microchip Technology subject to Rule 16b-3 | ||
Richard Simoncic over a year ago Microchip Technology exotic insider transaction detected |
Microchip Technology's Outstanding Corporate Bonds
Microchip Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Microchip Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Microchip bonds can be classified according to their maturity, which is the date when Microchip Technology has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| US595017BA15 Corp BondUS595017BA15 | View |
Understand Microchip Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Microchip Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 1.78 | |||
| Coefficient Of Variation | (807.22) | |||
| Standard Deviation | 2.28 | |||
| Variance | 5.2 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.41) | |||
| Total Risk Alpha | (0.55) | |||
| Treynor Ratio | (0.21) | |||
| Maximum Drawdown | 10.28 | |||
| Value At Risk | (4.18) | |||
| Potential Upside | 3.16 | |||
| Skewness | (0.37) | |||
| Kurtosis | 0.4859 |
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 1.78 | |||
| Coefficient Of Variation | (807.22) | |||
| Standard Deviation | 2.28 | |||
| Variance | 5.2 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.41) | |||
| Total Risk Alpha | (0.55) | |||
| Treynor Ratio | (0.21) | |||
| Maximum Drawdown | 10.28 | |||
| Value At Risk | (4.18) | |||
| Potential Upside | 3.16 | |||
| Skewness | (0.37) | |||
| Kurtosis | 0.4859 |
Consider Microchip Technology's intraday indicators
Microchip Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Microchip Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Microchip Technology Corporate Filings
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 10th of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F3 | 30th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Microchip Stock media impact
Far too much social signal, news, headlines, and media speculation about Microchip Technology that are available to investors today. That information is available publicly through Microchip media outlets and privately through word of mouth or via Microchip internal channels. However, regardless of the origin, that massive amount of Microchip data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Microchip Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Microchip Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Microchip Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Microchip Technology alpha.
Microchip Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Microchip Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Microchip Technology Historical Investor Sentiment
Investor biases related to Microchip Technology's public news can be used to forecast risks associated with an investment in Microchip. The trend in average sentiment can be used to explain how an investor holding Microchip can time the market purely based on public headlines and social activities around Microchip Technology. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Microchip Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Microchip Technology and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Microchip Technology news discussions. The higher the estimate score, the more favorable the investor's outlook on Microchip Technology.
Microchip Technology Corporate Management
| Stephen Drehobl | VP of Mcu8 Division and Technology Devel. Division | Profile | |
| Mathew Bunker | Senior Operations | Profile | |
| Kimberly Herk | Corporate Counsel | Profile | |
| Joseph Krawczyk | Senior Engagement | Profile |
Additional Tools for Microchip Stock Analysis
When running Microchip Technology's price analysis, check to measure Microchip Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.