Home / Street Sector / Stocks Trapped in Bearish Claws: Microchip Technology Inc. (NASDAQ:MCHP), Mentor Graphics Corp. (NASDAQ:MENT)

Stocks Trapped in Bearish Claws: Microchip Technology Inc. (NASDAQ:MCHP), Mentor Graphics Corp. (NASDAQ:MENT)

Following previous ticker characteristics, Microchip Technology Inc. (NASDAQ:MCHP) also run on active notice, stock price dropped -2.91% after traded at $62.44 in most recent trading session.  Microchip Technology Inc. (MCHP) released that a new generation of 8-bit tinyAVR MCUs. The four new devices range from 14 to 24 pins and 4 KB to 8 KB of Flash and are the first tinyAVR microcontrollers to feature Core Independent Peripherals (CIPs).

CEO and Chairman of the Board of Microchip Technology Inc, Steve Sanghi stated that this announcement is very important to Microchip as it represents the coming together of the two most powerful 8-bit MCU brands under one roof. “Consumers love both PIC® and AVR® MCUs and Microchip is re-energizing new product development to not only continue to support, but to grow the esteemed AVR portfolio.”

MCHP has price to earnings ratio of 164.32 and the price to current year EPS stands at -9.70%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 11.75%. The earning yield also gives right direction to lure investment, as the co has 2.31% dividend yield. Moving toward ratio analysis, it has current ratio of 2.90 and quick ratio was calculated as 2. The debt to equity ratio appeared as 0 for seeing its liquidity position.

Taking notice on volatility measures, price volatility of stock was 3.69% for a week and 2.13% for a month. The price volatility’s Average True Range for 14 days was 1.60. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.30 out of 1-5 scale with week’s performance of 4.71%. MCHP’s institutional ownership was registered as 98.80%, while insider ownership was 2.38%.

Mentor Graphics Corp. (NASDAQ:MENT) persists its position slightly strong in context of buying side, while shares price jumped up 1.86% during latest trading session.

Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. MENT holds price to earnings ratio of 55.61 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 to 25, but alone low P/E ratio does not necessarily mean that a company is undervalue. With reference to all theories, earning yield also gives right direction to lure investment, as MENT has 0.73% dividend yield.

Narrow down focus to other ratios, the co has current ratio of 2.20 that indicates if MENT lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 2.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.21, sometimes its remain same with long term debt to equity ratio.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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