Microchip Technology Incorporated (MCHP): From Top to Bottom

Microchip Technology Incorporated (MCHP) is an interesting player in the Technology space, with a focus on Semiconductor – Broad Line. The stock has been active on the tape, currently trading at $90.58, up from yesterday’s close by 1.86%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Microchip Technology Incorporated (MCHP) currently trades with a market capitalization of $20.95 Billion. That value represents a market adjusting for revenues that have been growing by 16.16 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For MCHP, the company currently has $826.41 Million of cash on the books, which is offset by $5.98 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $1.19 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.35 on a per share basis this quarter. Perhaps, that suggests something about why 98.04% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how MCHP has been acting. Looking at the stock’s movement on the chart, Microchip Technology Incorporated recorded a 52-week high of $95.92. It is now trading 5.34% off that level. The stock is trading $91.46 its 50-day moving average by 0.88%. The stock carved out a 52-week low down at $60.77.

In recent action, Microchip Technology Incorporated (MCHP) has made a move of -4.86% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 18, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 12.91% with $226.75 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MCHP.

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