Microchip Technology Stock Buy Hold or Sell Recommendation
| MCHP Stock | USD 86.19 2.66 3.18% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Microchip Technology is 'Strong Hold'. Macroaxis provides Microchip Technology buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MCHP positions. The advice algorithm takes into account all of Microchip Technology's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Microchip Technology's buy or sell advice are summarized below:
Real Value 91.8 | Target Price 97.14 | Hype Value 86.15 | Market Value 86.19 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Microchip Technology given historical horizon and risk tolerance towards Microchip Technology. When Macroaxis issues a 'buy' or 'sell' recommendation for Microchip Technology, the advice is generated through an automated system that utilizes algorithms and statistical models.
Microchip |
Execute Microchip Technology Buy or Sell Advice
The Microchip recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Microchip Technology. Macroaxis does not own or have any residual interests in Microchip Technology or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Microchip Technology's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively 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 |
Microchip Technology Trading Alerts and Improvement Suggestions
| Microchip Technology generated a negative expected return over the last 90 days | |
| Over 96.0% of the company shares are owned by institutional investors | |
| On 8th of March 2024 Microchip Technology paid $ 0.45 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: CHIPS Act money is starting to move, but itll take years to see results |
Microchip Technology Returns Distribution Density
The distribution of Microchip Technology's historical returns is an attempt to chart the uncertainty of Microchip Technology's future price movements. The chart of the probability distribution of Microchip Technology daily returns describes the distribution of returns around its average expected value. We use Microchip Technology price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Microchip Technology returns is essential to provide solid investment advice for Microchip Technology.
| Mean Return | -0.02 | Value At Risk | -3.9 | Potential Upside | 3.40 | Standard Deviation | 2.04 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Microchip Technology historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Microchip Stock 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 originates 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 | Principal Financial Group Inc | 2023-12-31 | 9.3 M | Jpmorgan Chase & Co | 2023-12-31 | 7.9 M | Norges Bank | 2023-12-31 | 7.5 M | Amundi | 2023-12-31 | 7.4 M | Northern Trust Corp | 2023-12-31 | 7.4 M | Boston Partners Global Investors, Inc | 2023-12-31 | 6.9 M | Bank Of America Corp | 2023-12-31 | 6.5 M | Hhg Plc | 2023-12-31 | 5.6 M | Van Eck Associates Corporation | 2023-12-31 | 5.2 M | Vanguard Group Inc | 2023-12-31 | 66.7 M | Blackrock Inc | 2023-12-31 | 45.4 M |
Microchip Technology Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 28.8M | 18.4M | (177.8M) | (483.2M) | (434.9M) | (413.1M) | |
| Change In Cash | (27.6M) | (121M) | 37.4M | (83.4M) | (75.1M) | (71.3M) | |
| Free Cash Flow | 1.5B | 1.8B | 2.5B | 3.1B | 3.6B | 3.8B | |
| Depreciation | 1.2B | 1.2B | 1.1B | 998.4M | 1.1B | 1.2B | |
| Other Non Cash Items | 144.4M | 381.4M | 161.4M | 25M | 28.8M | 27.3M | |
| Capital Expenditures | 67.6M | 92.6M | 370.1M | 486.2M | 559.1M | 587.1M | |
| Net Income | 570.6M | 349.4M | 1.3B | 2.2B | 2.6B | 2.7B | |
| End Period Cash Flow | 401M | 280M | 317.4M | 234M | 269.1M | 417.9M | |
| Dividends Paid | 350.1M | 388.3M | 503.8M | 695.3M | 799.6M | 839.6M | |
| Investments | 2.7M | (173.3M) | (477.7M) | (599.5M) | (539.6M) | (512.6M) | |
| Change Receivables | (53.3M) | (63.7M) | (74.9M) | (232.7M) | (209.4M) | (199.0M) | |
| Change To Netincome | (312M) | 352.8M | 323.1M | 384.2M | 441.8M | 463.9M | |
| Net Borrowings | (1.1B) | (1.4B) | (1.4B) | (1.5B) | (1.3B) | (1.3B) |
Microchip Technology Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Microchip Technology or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Microchip Technology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Microchip stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.17 | |
β | Beta against NYSE Composite | 1.79 | |
σ | Overall volatility | 2.06 | |
Ir | Information ratio | -0.05 |
Microchip Technology Volatility Alert
Microchip Technology exhibits very low volatility with skewness of 0.16 and kurtosis of 0.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Microchip Technology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Microchip Technology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Microchip Technology Implied Volatility
Microchip Technology's implied volatility exposes the market's sentiment of Microchip Technology stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microchip Technology's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Microchip Technology stock will not fluctuate a lot when Microchip Technology's options are near their expiration.
Microchip Technology Fundamentals Vs Peers
Comparing Microchip Technology's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Microchip Technology's direct or indirect competition across all of the common fundamentals between Microchip Technology and the related equities. This way, we can detect undervalued stocks with similar characteristics as Microchip Technology or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Microchip Technology's fundamental indicators could also be used in its relative valuation, which is a method of valuing Microchip Technology by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Microchip Technology to competition |
| Fundamentals | Microchip Technology | Peer Average |
| Return On Equity | 0.35 | -0.31 |
| Return On Asset | 0.12 | -0.14 |
| Profit Margin | 0.28 % | (1.27) % |
| Operating Margin | 0.30 % | (5.51) % |
| Current Valuation | 50.59 B | 16.62 B |
| Shares Outstanding | 540.39 M | 571.82 M |
| Shares Owned By Insiders | 2.08 % | 10.09 % |
| Shares Owned By Institutions | 95.50 % | 39.21 % |
| Number Of Shares Shorted | 26.09 M | 4.71 M |
| Price To Earning | 59.00 X | 28.72 X |
| Price To Book | 6.54 X | 9.51 X |
| Price To Sales | 5.42 X | 11.42 X |
| Revenue | 8.44 B | 9.43 B |
| Gross Profit | 4.45 B | 27.38 B |
| EBITDA | 3.78 B | 3.9 B |
| Net Income | 2.24 B | 570.98 M |
| Cash And Equivalents | 379.1 M | 2.7 B |
| Cash Per Share | 0.69 X | 5.01 X |
| Total Debt | 6.44 B | 5.32 B |
| Debt To Equity | 1.27 % | 48.70 % |
| Current Ratio | 1.78 X | 2.16 X |
| Book Value Per Share | 13.10 X | 1.93 K |
| Cash Flow From Operations | 3.62 B | 971.22 M |
| Short Ratio | 4.49 X | 4.00 X |
| Earnings Per Share | 4.28 X | 3.12 X |
| Price To Earnings To Growth | 8.47 X | 4.89 X |
| Target Price | 93.94 | |
| Number Of Employees | 22.6 K | 18.84 K |
| Beta | 1.63 | -0.15 |
| Market Capitalization | 45.14 B | 19.03 B |
| Total Asset | 16.37 B | 29.47 B |
| Retained Earnings | 5.76 B | 9.33 B |
| Working Capital | (49.3 M) | 1.48 B |
Note: Exercise or conversion by Richard Simoncic of 3708 shares of Microchip Technology subject to Rule 16b-3 [view details]
Microchip Technology Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Microchip . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Microchip Technology Buy or Sell Advice
When is the right time to buy or sell Microchip Technology? Buying financial instruments such as Microchip Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 7.7B | 6.4B | 7.4B | 7.8B | Total Assets | 16.2B | 16.4B | 18.8B | 19.8B |
Use Investing Ideas to Build Portfolios
In addition to having Microchip Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Investing
Companies involved in money management and investment banking services. The Investing theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investing Theme or any other thematic opportunities.
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Check out Microchip Technology Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.Note that the Microchip Technology information on this page should be used as a complementary analysis to other Microchip Technology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary 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.
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Is Microchip Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microchip Technology. If investors know Microchip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microchip Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.26) | Dividend Share 1.59 | Earnings Share 4.28 | Revenue Per Share 15.7 | Quarterly Revenue Growth (0.19) |
The market value of Microchip Technology is measured differently than its book value, which is the value of Microchip that is recorded on the company's balance sheet. Investors also form their own opinion of Microchip Technology's value that differs from its market value or its book value, called intrinsic value, which is Microchip Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microchip Technology's market value can be influenced by many factors that don't directly affect Microchip Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microchip Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microchip Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microchip Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.