Gleacher & Co. Maintains a 'Neutral' on Micrel (MCRL); Dividend and Buy-back Provide a Decent Read-through on Qtr

Gleacher & Co. maintains a 'Neutral' on Micrel (NASDAQ: MCRL), PT $11.50.

Gleacher analyst said, "Yesterday after the market close, MCRL declared that it has increased its dividend 14.3% to $0.04/quarter (to be paid in Q3) in addition to approving an additional $30mil for share repurchase (adding to the existing $6.7mil left from its original $30mil in 2010)...Yield (not a big deal) with buy-back already captured in our model...While dividend yield increased to 1.4% (based on yesterday's closing price of $11.77), MCRL remains at the lower-end of the Analog group range (Intersil (Nasdaq: ISIL) 3.3%, Maxim (Nasdaq: MXIM) 3%, Linear Tech (Nasdaq: LLTC) 2.8%, Analog Devices (NYSE: ADI) 2.4%, Texas Instruments (NYSE: TXN) 1.5%). Additionally, our model currently assumes 1.3% share count reduction (or 800K shares) in CY12, where equity grants curb a more favorable impact to EPS...But this could be interpreted as a solid quarter."

For more ratings news on Micrel click here and for the rating history of Micrel click here.

Shares of Micrel closed at $11.77 yesterday.

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