Microchip Technology Incorporated’s (NASDAQ:MCHP) 25% Share Price Surge Not Quite Adding Up
Those holding Microchip Technology Incorporated (NASDAQ:MCHP) shares would be relieved that the share price has rebounded 25% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 41% in the last twelve months.
Following the firm bounce in price, Microchip Technology may be sending very bearish signals at the moment with a price-to-sales (or “P/S”) ratio of 7.2x, since almost half of all companies in the Semiconductor industry in the United States have P/S ratios under 3.7x and even P/S lower than 1.6x are not unusual. Nonetheless, we’d need to dig a little…
