- MCHP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.5 million.
- MCHP has traded 2.2 million shares today.
- MCHP is trading at 1.77 times the normal volume for the stock at this time of day.
- MCHP crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MCHP with the Ticky from Trade-Ideas. See the FREE profile for MCHP NOW at Trade-IdeasMore details on MCHP: Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The stock currently has a dividend yield of 3.2%. MCHP has a PE ratio of 24.9. Currently there are 2 analysts that rate Microchip Technology a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Microchip Technology has been 2.4 million shares per day over the past 30 days. Microchip Technology has a market cap of $9.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.02 and a short float of 12.2% with 11.65 days to cover. Shares are down 0% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Microchip Technology as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $192.05 million or 23.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.46%.
- MICROCHIP TECHNOLOGY INC's earnings per share declined by 8.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MICROCHIP TECHNOLOGY INC increased its bottom line by earning $1.81 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $1.81).
- MCHP's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.07 is very high and demonstrates very strong liquidity.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, MICROCHIP TECHNOLOGY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Microchip Technology Ratings Report.