Check Out the Insider Trading of Microchip Technology Incorporated (MCHP)

Will Microchip Technology Incorporated (NASDAQ:MCHP) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 13 March. The shares dropped -1.24 points or -1.44 percent at $85.06 with a light trade volume of 2.482 million shares. After opening the session at $86.77, the shares went as high as $87.08 and as low as $84.98, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $20 billion and now has 235.3 million shares outstanding. Microchip Technology Incorporated (MCHP) stock has lost -4.38 percent of market value in 21 trading days.

MCHP stock has a trailing 3-year beta of 1.22, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.94 a share in the trailing twelve months. The stock’s value has surged 18.27 percent year to date (YTD) against a decline of -15.14 percent in 12 month’s time. The company’s shares still trade -18.37 percent away from its 1-year high of $104.20 and 40.13 percent up from 52-week low of $60.70. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Microchip Technology Incorporated (MCHP) will probably climb 16.98 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $130-month high price target. This represents a whopping 52.83 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $100, which represents a return potential of 17.56 percent when compared to the closing price of the stock of $85.06 on Wednesday, March 13. The lowest price target for the stock is $75 — slightly more than -11.83 percent from MCHP’s current share price.

History has shown that shares in Microchip Technology Incorporated have gone up on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $84.33. Below this, the next support is placed in the zone of $83.61. Till the time, the MCHP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 46.51 on daily chart, which may remain a cause for concern. If the price breaks below $83.61 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $86.43 mark may result into a pull-back move towards $87.81 level.

Shares of Microchip Technology Incorporated (MCHP) are trading at a P/E ratio of 91.43 times earnings reported for the past 12 months. The industry MCHP operates in has an average P/E of 9.15. Its P/E ratio went as low as 26.3X and as high as 101.55 over the 5-year span.Further, it is sporting a 3.99 on the Price-to-Sales ratio. Compare this with the industry average P/S of 12.13. 54.3 percent is the gross profit margin for Microchip Technology Incorporated and operating margin sits at 13.3 percent. Along with this, the net profit margin is 6.5 percent.