|Bid||88.93 x 1200|
|Ask||88.97 x 1100|
|Day's Range||88.40 - 90.07|
|52 Week Range||60.70 - 101.35|
|Beta (3Y Monthly)||1.57|
|PE Ratio (TTM)||60.16|
|Forward Dividend & Yield||1.46 (1.66%)|
|1y Target Est||N/A|
Readers hoping to buy Microchip Technology Incorporated (NASDAQ:MCHP) for its dividend will need to make their move...
Investing is all about returns, and investors want to see their money work. The tech sector has long been known for spectacular return on investment (ROI) among the giant corporations. Just think about Amazon’s (AMZN) sky-high share price, or Microsoft’s (MSFT) trillion-dollar market cap – but the average tech stocks have shown themselves to be vulnerable to market pressures, especially from China. In today’s environment, with US-China trade tensions continuing to simmer and fears growing of a Chinese crackdown in Hong Kong, it only makes sense to expect tech stocks to suffer.But not all of them are. Here, we’ll look at two chip stocks that have been delivering for their shareholders, and have what it takes to succeed in these dynamic times. Flagging Microchip Technologies for a Bullish BreakoutThe semiconductor industry is broad, and Microchip Technologies (MCHP) has found its niche within it. The company focuses on integrated circuits, microcontrollers, and related processor chips for professional and home uses. MCHP’s products have a wide range of applications, from IoT to touchscreen technology to home appliances to the automotive, aerospace, and defense industries. It just goes to show that a narrowly focused product can have broader applications.And broader applications are good for profits. MCHP is up 25% year-to-date, beating the S&P 500’s 16% return, and in its recent fiscal Q1 earnings report beat the EPS estimate by 12.8%, on revenues that met expectations. In an added bonus for investors, MCHP has a history of regular dividend payments at 36 cents per share quarterly. While a modest payout, it’s a bit of icing on top of that year-to-date share appreciation.Wall Street’s top analysts are taking note of MCHP, acknowledging the company’s profitable niche and potential. 5-star Needham analyst Rajvindra Gill, who in January downgraded the stock, has since revised his stance and set it as a buying prospect. His $100 price target suggests an upside of 15% to the shares. (To watch Gill's track record, click here)Gill is not alone going bullish on Microchip. 5-star analyst Hans Mosesmann of Rosenblatt, wrote, “We reiterate our Buy rating for MCHP with a $115 price target…” That price target indicates a 32% upside. And writing from B. 4-star Riley FBR, Craig Ellis said, “Q/Q revenue growth midpoint, coupled with CEO Sanghi’s positive tone, embolden confidence growth is returning for chip suppliers…” Ellis set a bullish $120 price target, suggesting he sees room for a 38% upside potential.Overall, Microchip has a Strong Buy from the analyst consensus, based on 8 recent ratings including 7 buys and 1 hold. The average price target, $109, suggests an upside of 25% from the current share price of $90. (See MCHP's price targets and analyst ratings on TipRanks) Broadcom Stock Has 25% Upside, Says Merrill Lynch Broadcom (AVGO) Stock is up 9% so far this year, which underperforms the broader market indexes, but for return-minded investors AVGO’s dividend more than compensates the slower share gains. At 3.74%, the yield is double the S&P 500 average, and the high share price makes the payout $10.60 cents per share annualized.5-star Merrill Lynch analyst Vivek Arya took note of Broadcom’s recent acquisition efforts, specifically the company’s attempt to purchase cybersecurity company Symantec (SYMC). Arya writes, “In July, there were media reports of Broadcom being in talks to buy Symantec as a whole. The latest deal is reportedly for Symantec’s enterprise security business, which is a better fit for Broadcom than acquiring the entire company.” Arya goes on to note that Broadcom has a successful history of M&A, saying “the strategy has proved to be extremely effective in consistently generating free cash flow.” Arya’s approval of AVGO stock is reflected in $345 price target and 27% upside prediction on the stock. (To watch Arya's track record, click here)5-star analyst Mitch Steves, writing from RBC Capital, also takes a bullish stance on AVGO. In initiating coverage with a Buy rating last month, Steves said, “The stock offers potential for multiple expansion given the company's long-term earnings growth well into double digits and a healthy capital allocation.” Steves’ price target for Broadcom, $320, suggests a 18% upside.Broadcom’s analyst consensus rating is a Strong Buy, derived from 23 buy ratings and 7 holds given in the past three months. Shares are selling for $277 and the stock carries an average price target of $313, giving it an upside potential of 15%. (See AVGO's price targets and analyst ratings on TipRanks)
Microchip CEO Steve Sanghi said the company’s June quarter financial results “were better than we expected in spite of a challenging economic environment” with the Huawei shipment restrictions and Chinese trade tensions.
Microchip (MCHP) rides on strength in microcontroller business and portfolio expansion. However, impact of Huawei shipment limitations acted as the primary tailwind during the reported quarter.
Microchip Tech (MCHP) delivered earnings and revenue surprises of 2.17% and -0.68%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Microchip Technology late Tuesday beat Wall Street's earnings target for its fiscal first quarter, but came up short on sales. The earnings news sent shares higher in extended trading.
Microchip Technology Incorporated (NASDAQ:MCHP) received a lot of attention from a substantial price movement on the...
(Bloomberg) -- Semiconductor companies are wincing as consumers around the globe are buying fewer cars amid continuing trade tensions between the U.S. and China.China has been a pain point for the sector as the two countries continue to spar on trade, and chipmakers had braced for slumping demand in the country to dent performance. The automotive sector has emerged as one of the biggest sources of weakness and is now threatening to dampen the chances of a recovery in the latter half of the year.It has so far been an unfortunate year for automakers, as global sales shrank 6.5% from a year earlier in the first quarter of 2019, and 7% in the next three months, according to Bloomberg Intelligence. China led the decline with car sales in the country falling for 12 consecutive months through June, amid slowing economic growth, trade-related turmoil, and a weak consumer demand, exacerbated by newer and stricter emissions rules. With the U.S. and China ratcheting the turmoil up a notch this week, some say the risks of tariffs on auto imports is now higher.Many auto parts suppliers, as well as Ford Motor Co., have reported disappointing results and issued weak forecasts for the year, citing the China slowdown. And now the effect is rippling through the rest of the supply chain, hurting chipmakers and other industrial manufacturers.“China weakness was expected, but in all honesty, we were expecting a trade deal by now,” Piper Jaffray & Co. analyst Harsh Kumar said in an interview. Kumar, who covers semiconductor stocks, said the companies supplying the automotive market were still seeing growth in radar and electrification-related products, while the traditional, gas engine segment is getting hit hard.Most of the automotive chip manufacturers have a larger piece of their business associated with traditional auto, and “that is not doing so well because there isn’t any market share or penetration to be gained; it is simply a units game,” Kumar said, referring to the fewer number of cars being sold.Maxim Integrated Products Inc., which makes chips that are used in various parts of a car including lighting, infotainment and driver assistance systems, said it expected the calendar third quarter to be slow, due to a “soft environment” for automotive production. The company’s battery management systems used in electric vehicles will also have fewer shipments, given the market uncertainty in China, the company said.The concerns were echoed by NXP Semiconductors NV, which makes components that help a car to sense its environment and process that data. Maxim and NXP’s customers include auto suppliers such as Aptiv Plc, Lear Corp. and Visteon Corp. as well as Fiat Chrysler Automobiles NV. Other chipmakers with substantial auto market exposure include Infineon Technologies AG, Analog Devices Inc., Texas Instruments Inc., and Microchip Technology Inc.Meanwhile, Rockwell Automation Inc., which counts both automotive and semiconductor sectors among its customers, saw both markets decline in the quarter ending June 30.“Overall, the combination of production cuts and reductions in component inventory is having an significant impact,” Morgan Stanley’s Craig Hettenbach, who covers semiconductors, said in an email interview. The analyst said that while the weakness is most pronounced in China, Europe has also been below expectations from the beginning of the year. “There is a lot of focus on when China will provide incentives to stimulate demand, but company and investor expectations for stimulus are pretty low right now,” Hettenbach said.A respite is not expected anytime soon. According to Moody’s, global vehicle sales are expected to fall 3.8% in 2019, amid further weakening demand in China and Western Europe. The latest round of trade war-related tarriffs could make matters even worse.To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jennifer Bissell-Linsk, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Microchip Tech (MCHP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Finding top semiconductor stocks to buy involves understanding the health of markets that purchase chips for their products. Chip stocks have risen on hopes for a late 2019 market recovery.
Tech stocks are driving today's stock market rally. As of 3:52 PM ET, the tech-heavy the Nasdaq Composite Index is up 0.81%, driven by a surge in tech stocks.
Steve Sanghi and other top executives saw their compensation climb in the past year thanks to generous stock options.
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are...
Microchip Technology Inc NASDAQ/NGS:MCHPView full report here! Summary * Bearish sentiment is high * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | NegativeShort interest is extremely high for MCHP with more than 20% of shares on loan. This means that investors who seek to profit from falling equity prices are currently targeting MCHP. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $7.86 billion over the last one-month into ETFs that hold MCHP are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The Morningstar U.S. Technology Index is up 23% year to date through June 25, making it the top-performing sector. U.S. and China trade tensions remain a source of volatility, most notably with the U.S. ban on selling into Huawei, a significant smartphone and network equipment maker. The median technology stock is roughly 4% below our fair value estimate, similar to the 2% premium at the end of the first quarter.
Shares of Advanced Micro Devices (NASDAQ:AMD) have been on a tear so far in 2019, up over 70% year to date. But to me, it seems like investors in have some things to consider.I do not own this stock, but if I did these issues would concern me and I would probably sell it here. Issues with AMD Stock Click to Enlarge First of all, the last time that AMD traded at these levels back in September and October, sellers entered the market and drove it much lower. From the end of September through the end of October, AMD lost almost 50% of its value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe stock recently ran into resistance at $32.50 and was unable to stay above it. AMD stock needs to push past that level, and so far it has failed to do so.Second, the tech sector as a whole is testing resistance as well. If the Sector goes lower, it will probably take AMD with it. Click to Enlarge The Technology Select Sector Spider (NYSEARCA:XLK) follows the tech sector. You can see here that they are currently testing the same resistance levels that sold off from in late April and early May.The third thing that would concern me is AMD stock's valuation verses the other members of its peer group. According the CNBC, AMD has the highest valuation in its group. The price-to-earnings ratio of AMD is 47. This is way higher than its peers. Analog Devices (NYSE:ADI) has a P/E ratio of 22. KLA-Tencor (NASDAAQ:KLAC) and Microchip Technology (NASDAQ:MCHP) each have price-to-earnings ratio of around 14. The last member of the group, Xilinx (NASDAQ:XLNX), has a P/E ratio of 29.The fourth thing that I would consider bearish for the stock is the lack of insider buying.I went back one year and I couldn't find any significant insider buying. That worries me. After all, who knows more about what is going on insider a company than the insiders? If they don't want to own their company's stock then I don't want to either.And finally, the fifth thing that makes me want to sell AMD is actually the recent upgrade at Morgan Stanley.Hear me out. On June 6, AMD stock was upgraded from underwieght to equal weight. "Being cautious on the stock has obviously been the wrong call, even though we were right on some aspects," said Joseph Moore in a note on Thursday. That sounds positive, right? But what concerns me is that Morgan Stanley's price target is $28. This is almost 10% below current levels.Now, none of this is to say AMD absolutely can't make gains here. It's just that so many technical indicators look worrisome that I'd steer clear for now.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post 5 Reasons Why I Would Sell AMD Stock Here appeared first on InvestorPlace.