Atmel Corporation (ATML) Takes a Hit After Microchip (MCHP) Reportedly Reconsiders Their Acquisition Offer


Atmel Corporation (NASDAQ:ATML) shares are down 7.47% in pre-market trading this morning, after it has been reported that Microchip (NASDAQ:MCHP) is reconsidering their $9.00 per share acquisition offer.

This latest news comes after Microchip (NASDAQ:MCHP) reportedly did not like what they saw when Atmel Corporation (NASDAQ:ATML) posted reports of struggles in the fourth quarter of 2015. These struggles have at least made Microchip rethink their $9.00 per share offer.

As of right now, no decision has been made. It is entirely possible that the deal will be off, but equally possible that it will continue forward. Another possibility is that the two companies will reach an acquisition deal at a lower per-share price than originally reported.

Shareholders certailny have been keen on selling Atmel Corporation (NASDAQ:ATML) this morning, prior to the market opening. The stock closed at $8.57 during the last trading session. It is down 4.25% since June 3, 2015 and is downtrending. It has outperformed the S&P500 by 1.61%.

From a total of 8 analysts covering Atmel Corporation (NASDAQ:ATML) stock, 2 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $10.50 while the lowest target price is $8. The mean of all analyst targets is $9.23 which is 7.70% above today’s ($8.57) stock price. Atmel Corporation was the topic of 16 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Topeka Capital Markets maintained shares on October 29 with a “Buy” rating. Needham downgraded ATML stock in a recent report from September 22 to a “Hold” rating. Finally, FBR Capital downgraded the stock to a “Mkt Perform” rating in a report they issued on a September 21.

The institutional sentiment decreased to 1 in Q2 2015. It’s down 0.01, from 1.01 in 2015Q2. The ratio fall, as 53 funds sold all their Atmel Corporation shares they owned while 76 reduced their positions. 46 funds bought stakes while 83 increased their total positions. Institutions now own 344.71 million shares which is 1.91% less than the previous share count of 351.44 million in 2015Q2.

Ruffer Llp holds 5.43% of its total portfolio in Atmel Corporation, equating to 15.72 million shares. Tig Advisors Llc owns 10.04 million shares representing 3.71% of their total US portfolio. Moreover, Hirzel Capital Management Llc has 2.61% of their total portfolio invested in the company, equating to 2.28 million shares. The Wisconsin-based 1492 Capital Management Llc has a total of 2.11% of their portfolio invested in the stock. Quentec Asset Management Llc, a New York-based fund reported 1.21 million shares owned.

Atmel Corporation is a designer, developer and supplier of microcontrollers. The company has a market cap of $3.60 billion. The Firm operates through four divisions: Microcontroller, Nonvolatile Memory, Automotive and Multi-Market and Other. It has 229.7 P/E ratio. The Microcontroller segment includes the Company’s general purpose microcontroller and microprocessor families, AVR 8-bit and 32-bit products, Atmel SMART ARM based products, its 8051 8-bit products, and designated commercial wireless products, among others.