How to buy Microchip Technology Incorporated shares

Microchip Technology Incorporated (MCHP) is a leading semiconductors business with stocks listed in the US. It opened the day at US$156.51 after a previous close of US$157.36. During the day the price has varied from a low of USD155.455 to a high of USD159.48. The latest price was USD156.32 (25 minute delay). Microchip Technology Incorporated is listed on the NASDAQ. All prices are listed in US Dollars.

How to buy shares in Microchip Technology Incorporated

Contents

  1. Compare share trading platforms. To buy shares in a US company from Australia you’ll need to find a trading platform that offers access to US stock markets. If you’re just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Microchip Technology Incorporated. Find the share by name or ticker symbol: MCHP. Research its history to confirm it’s a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Microchip Technology Incorporated reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market’s ups and downs. You may be able to buy a fractional share of Microchip Technology Incorporated, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Microchip Technology Incorporated. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

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Microchip Technology Incorporated share price

Use our graph to track the performance of MCHP stocks over time.

Microchip Technology Incorporated shares at a glance

Information last updated 2021-04-14.

Open US$156.51
High US$159.48
Low US$155.455
Close US$156.32
Previous close US$157.36
Change US$-1.04
Change % -0.6609%
Volume 1,015,779

Information last updated 2021-04-08.

52-week range US$73.6139 – US$166.2548
50-day moving average US$151.902
200-day moving average US$135.1269
Target price US$171.14
PE ratio 126.3673
Dividend yield US$1.471 (0.92%)
Earnings per share (TTM) US$1.258

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Is it a good time to buy Microchip Technology Incorporated stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Microchip Technology Incorporated price performance over time

Historical closes compared with the last close of $156.32

1 week (2021-04-08) -3.38%
1 month (2021-03-15) 4.52%
3 months (2021-01-12) 4.69%
6 months (2020-10-12) 36.97%
2 years (2019-04-12) 63.93%
3 years (2018-04-12) 75.52%
5 years (2016-04-12) 223.64%

Is Microchip Technology Incorporated under- or over-valued?

Valuing Microchip Technology Incorporated stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Microchip Technology Incorporated’s overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Microchip Technology Incorporated’s P/E ratio

Microchip Technology Incorporated’s current share price divided by its per-share earnings (EPS) over a 12-month period gives a “trailing price/earnings ratio” of roughly 126x. In other words, Microchip Technology Incorporated shares trade at around 126x recent earnings.

That’s relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they’re over-valued.

Microchip Technology Incorporated’s PEG ratio

Microchip Technology Incorporated’s “price/earnings-to-growth ratio” can be calculated by dividing its P/E ratio by its growth – to give 1.5464. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Microchip Technology Incorporated’s future profitability. By accounting for growth, it could also help you if you’re comparing the share prices of multiple high-growth companies.

Microchip Technology Incorporated’s EBITDA

Microchip Technology Incorporated’s EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$2.1 billion (£1.5 billion).

The EBITDA is a measure of a Microchip Technology Incorporated’s overall financial performance and is widely used to measure a its profitability.

Microchip Technology Incorporated financials

Revenue TTM US$5.3 billion
Operating margin TTM 16.51%
Gross profit TTM US$3.2 billion
Return on assets TTM 3.2%
Return on equity TTM 6.11%
Profit margin 6.29%
Book value 19.673
Market capitalisation US$42.8 billion

TTM: trailing 12 months

Shorting Microchip Technology Incorporated shares

There are currently 7.1 million Microchip Technology Incorporated shares held short by investors – that’s known as Microchip Technology Incorporated’s “short interest”. This figure is 14.5% up from 6.2 million last month.

There are a few different ways that this level of interest in shorting Microchip Technology Incorporated shares can be evaluated.

Microchip Technology Incorporated’s “short interest ratio” (SIR)

Microchip Technology Incorporated’s “short interest ratio” (SIR) is the quantity of Microchip Technology Incorporated shares currently shorted divided by the average quantity of Microchip Technology Incorporated shares traded daily (recently around 2.4 million). Microchip Technology Incorporated’s SIR currently stands at 2.92. In other words for every 100,000 Microchip Technology Incorporated shares traded daily on the market, roughly 2920 shares are currently held short.

However Microchip Technology Incorporated’s short interest can also be evaluated against the total number of Microchip Technology Incorporated shares, or, against the total number of tradable Microchip Technology Incorporated shares (the shares that aren’t held by “insiders” or major long-term shareholders – also known as the “float”). In this case Microchip Technology Incorporated’s short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Microchip Technology Incorporated shares in existence, roughly 30 shares are currently held short) or 0.0304% of the tradable shares (for every 100,000 tradable Microchip Technology Incorporated shares, roughly 30 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Microchip Technology Incorporated.

Find out more about how you can short Microchip Technology Incorporated stock.

Microchip Technology Incorporated’s environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Microchip Technology Incorporated.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Microchip Technology Incorporated’s total ESG risk score

Total ESG risk: 36.55

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Microchip Technology Incorporated’s overall score of 36.55 (as at 12/31/2018) is pretty weak – landing it in it in the 73rd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Microchip Technology Incorporated is exposed to within the areas of “environmental” (carbon footprint, resource use etc.), “social” (health and safety, human rights etc.), and “governance” (anti-corruption, tax transparency etc.).

Microchip Technology Incorporated’s environmental score

Environmental score: 18.35/100

Microchip Technology Incorporated’s environmental score of 18.35 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Microchip Technology Incorporated is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Microchip Technology Incorporated’s social score

Social score: 12.44/100

Microchip Technology Incorporated’s social score of 12.44 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Microchip Technology Incorporated is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Microchip Technology Incorporated’s governance score

Governance score: 10.76/100

Microchip Technology Incorporated’s governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Microchip Technology Incorporated is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Microchip Technology Incorporated’s controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Microchip Technology Incorporated scored a 1 out of 5 for controversy – the highest score possible, reflecting that Microchip Technology Incorporated has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Microchip Technology Incorporated was last rated for ESG on: 2019-01-01.

Total ESG score 36.55
Total ESG percentile 73.42
Environmental score 18.35
Environmental score percentile 5
Social score 12.44
Social score percentile 5
Governance score 10.76
Governance score percentile 5
Level of controversy 1

Microchip Technology Incorporated share dividends

24%

Dividend payout ratio: 24.1% of net profits

Recently Microchip Technology Incorporated has paid out, on average, around 24.1% of net profits as dividends. That has enabled analysts to estimate a “forward annual dividend yield” of 0.98% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Microchip Technology Incorporated shareholders could enjoy a 0.98% return on their shares, in the form of dividend payments. In Microchip Technology Incorporated’s case, that would currently equate to about $1.471 per share.

While Microchip Technology Incorporated’s payout ratio might seem low, this can signify that Microchip Technology Incorporated is investing more in its future growth.

Microchip Technology Incorporated’s most recent dividend payout was on 7 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 February 2021 (the “ex-dividend date”).

Have Microchip Technology Incorporated’s shares ever split?

Microchip Technology Incorporated’s shares were split on a 3:2 basis on 8 May 2002. So if you had owned 2 shares the day before before the split, the next day you’d have owned 3 shares. This wouldn’t directly have changed the overall worth of your Microchip Technology Incorporated shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Microchip Technology Incorporated shares which in turn could have impacted Microchip Technology Incorporated’s share price.

Microchip Technology Incorporated share price volatility

Over the last 12 months, Microchip Technology Incorporated’s shares have ranged in value from as little as US$73.6139 up to US$166.2548. A popular way to gauge a stock’s volatility is its “beta”.

MCHP.US volatility(beta: 1.72)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share’s volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microchip Technology Incorporated’s is 1.7215. This would suggest that Microchip Technology Incorporated’s shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Microchip Technology Incorporated overview

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessors; and microcontrollers for automotive, industrial, aerospace, office communication, and computing applications. It also provides development tools that enable system designers to program microcontroller products for specific applications; field-programmable gate array (FPGA) products; and analog, power, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and Smartbits one time programmable NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, aerospace products. Microchip Technology Incorporated was founded in 1989 and is headquartered in Chandler, Arizona.

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