Microchip Technology (MCHP)

Financial Performance

Microchip Technology's financial performance appears to be struggling. The company reported a revenue of $1.2B in the last quarter, which is down by -6.2% from the previous quarter and down by -34.1% YoY. Gross profit was $668.5M, up by 8.9% QoQ but down by -40.3% YoY, indicating some recovery but still not enough to offset the losses compared to last year. Operating income profit was $146.6M, showing a significant decrease both QoQ (-33.9%) and YoY (-72.3%). Their EBITDA ratio was at a low of 0.29.

Stock Price

The stock price is currently trading at $59.93, representing an -8.6% decrease over the past month and a substantial drop of -34% YoY, significantly underperforming compared to its peers in the industry sector which suggests bearish sentiment around this stock among investors.

In terms of technical indicators, RSI value stands at 34.25 suggesting that it may be nearing oversold territory while its PE ratio is at 41.62 indicating potentially overvalued status relative to earnings generated per share (EPS). The EPS itself stands at just $1:44.

Alternative Data Signals

The alternative data signals paint a mixed picture for Microchip Technology's outlook:

• The website traffic has decreased slightly MoM by about -6:4%, possibly indicating less interest or engagement from customers or stakeholders.
• The number of job openings has also decreased MoM and significantly YoY pointing towards possible cost-cutting measures or a slowdown in expansion.
• However, the company's social media following has seen slight growth on Twitter and Instagram but a small decrease on Facebook over the last 90 days. This could indicate an active effort to engage with their customer base or audience digitally.
• The business outlook reported by employees remains positive at 67%, although this is slightly down YoY (-17.3%).

Conclusion

In conclusion, while there are some positive signs in terms of gross profit QoQ increase and social media engagement, the overall financial performance and stock price trends suggest bearish sentiment for Microchip Technology's stock. The alternative data signals also present a mixed picture with some negative indicators such as decreasing job openings and website traffic which may be cause for concern.

Note: This AI Stock Analysis is based on data as of December 16. Our members can refresh and get access to an up-to-date AI stock analysis.

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Based on a combination of financial analysis, technical indicators, and insights from alternative data, we predict that the stock price of Microchip Technology (MCHP), currently trading at $57.51, will... Sign up to access price prediction.

Disclaimer:
This prediction is provided for informational purposes only and does not constitute financial advice. Market conditions are subject to change, and past performance is not indicative of future results. Please conduct your own research or consult a professional before making investment decisions.