I recommend waiting for a better discount before investing in Microchip Technology Incorporated (MCHP).

The price of Microchip Technology Incorporated (NASDAQ: MCHP) closed at $83.24 in the last session, up 2.41% from day before closing price of $81.28. In other words, the price has increased by $+1.96 from its previous closing price. On the day, 5799003 shares were traded. MCHP stock price reached its highest trading level at $83.71 during the session, while it also had its lowest trading level at $81.83.

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We take a closer look at MCHP’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 161.11 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 18.39. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.80. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 1.04.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Credit Suisse on November 16, 2022, initiated with a Neutral rating and assigned the stock a target price of $85.

On June 28, 2022, Stifel Upgraded its rating to Buy which previously was Hold and also upped its target price recommendation from $70 to $75.

Goldman Downgraded its Buy to Neutral on March 28, 2022, while the target price for the stock was maintained at $79.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Feb 23 when Bjornholt James Eric sold 2,777 shares for $81.58 per share. The transaction valued at 226,548 led to the insider holds 30,582 shares of the business.

Johnson Karlton D sold 396 shares of MCHP for $32,076 on Feb 23. The Director now owns 973 shares after completing the transaction at $81.00 per share. On Feb 22, another insider, CHAPMAN MATTHEW W, who serves as the Director of the company, sold 1,000 shares for $81.13 each. As a result, the insider received 81,130 and left with 35,682 shares of the company.

Valuation Measures:

As of this moment, Microchip’s Price-to-Earnings (P/E) ratio for their current fiscal year is 22.49, and their Forward P/E ratio for the next fiscal year is 13.35. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.63. For the stock, the TTM Price-to-Sale (P/S) ratio is 5.78 while its Price-to-Book (P/B) ratio in mrq is 7.24.

Stock Price History:

Over the past 52 weeks, MCHP has reached a high of $87.76, while it has fallen to a 52-week low of $54.33. The 50-Day Moving Average of the stock is 79.21, while the 200-Day Moving Average is calculated to be 69.88.

Shares Statistics:

According to the various share statistics, MCHP traded on average about 4.70M shares per day over the past 3-months and 4.63M shares per day over the past 10 days. A total of 549.20M shares are outstanding, with a floating share count of 538.57M. Insiders hold about 2.09% of the company’s shares, while institutions hold 93.30% stake in the company. Shares short for MCHP as of Jan 12, 2023 were 13.6M with a Short Ratio of 18.30M, compared to 17.87M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.47% and a Short% of Float of 2.86%.

Dividends & Splits

The forward annual dividend rate for MCHP is 1.43, which was 1.47 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 1.81%, it implies a Forward Annual Dividend Yield of 1.69%. The stock’s 5-year Average Dividend Yield is 1.46. The current Payout Ratio is 30.90% for MCHP, which recently paid a dividend on Mar 06, 2023 with an ex-dividend date of Feb 16, 2023. Stock splits for the company last occurred on May 08, 2002 when the company split stock in a 3:2 ratio.

Earnings Estimates

The company has 20 analysts who recommend its stock at the moment. On average, analysts expect EPS of $1.62 for the current quarter, with a high estimate of $1.66 and a low estimate of $1.61, while EPS last year was $1.35. The consensus estimate for the next quarter is $1.63, with high estimates of $1.67 and low estimates of $1.58.

Analysts are recommending an EPS of between $6.04 and $5.31 for the fiscal current year, implying an average EPS of $5.97. EPS for the following year is $6.22, with 24 analysts recommending between $6.72 and $5.6.

Revenue Estimates

According to 19 analysts, the current quarter’s revenue is expected to be $2.22B. It ranges from a high estimate of $2.25B to a low estimate of $2.19B. As of the current estimate, Microchip Technology Incorporated’s year-ago sales were $1.84B, an estimated increase of 20.60% from the year-ago figure. For the next quarter, 19 analysts are estimating revenue of $2.24B, an increase of 14.10% less than the figure of $20.60% in the same quarter last year. There is a high estimate of $2.27B for the next quarter, whereas the lowest estimate is $2.12B.

A total of 23 analysts have provided revenue estimates for MCHP’s current fiscal year. The highest revenue estimate was $8.45B, while the lowest revenue estimate was $8.41B, resulting in an average revenue estimate of $8.43B. In the same quarter a year ago, actual revenue was $6.82B, up 23.60% from the average estimate. Based on 23 analysts’ estimates, the company’s revenue will be $8.69B in the next fiscal year. The high estimate is $9.34B and the low estimate is $7.5B. The average revenue growth estimate for next year is up 3.00% from the average revenue estimate for this year.