Key Points
- Director Matthew Chapman sold 10,000 shares of Microchip Technology on May 15 at an average price of $95.48, a transaction worth about $954,800. After the sale, he still owned 20,665 shares, cutting his stake by 32.61%.
- Microchip Technology reported better-than-expected quarterly results, posting EPS of $0.57 versus the $0.50 consensus and revenue of $1.31 billion versus $1.26 billion expected. Revenue rose 35.1% year over year, and the company issued Q1 2027 EPS guidance of $0.67 to $0.71.
- Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $97.52. Institutional ownership is also high, with 91.51% of shares held by institutional investors.
Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) Director Matthew Chapman sold 10,000 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $95.48, for a total value of $954,800.00. Following the completion of the transaction, the director owned 20,665 shares in the company, valued at $1,973,094.20. The trade was a 32.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link.
Microchip Technology Stock Down 3.1%
Shares of NASDAQ MCHP opened at $91.11 on Friday. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The firm's 50-day moving average is $78.26 and its 200-day moving average is $71.39. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The firm has a market capitalization of $49.30 billion, a PE ratio of 433.88, a price-to-earnings-growth ratio of 0.99 and a beta of 1.75.
Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the company earned $0.11 EPS. Microchip Technology's revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts expect that Microchip Technology Incorporated will post 2.58 EPS for the current year.
Microchip Technology Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be given a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is currently 866.67%.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Norges Bank bought a new position in Microchip Technology during the fourth quarter worth about $664,564,000. Barclays PLC lifted its holdings in Microchip Technology by 66.5% during the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock worth $891,881,000 after acquiring an additional 5,590,210 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in Microchip Technology by 25.7% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after buying an additional 2,257,932 shares in the last quarter. Holocene Advisors LP lifted its stake in Microchip Technology by 77.0% in the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after buying an additional 2,049,249 shares in the last quarter. Finally, Rafferty Asset Management LLC lifted its stake in Microchip Technology by 41.0% in the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after buying an additional 1,803,945 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors.
Analyst Ratings Changes
Several research analysts have recently issued reports on the company. KeyCorp restated an "overweight" rating and issued a $85.00 price target on shares of Microchip Technology in a research report on Friday, February 6th. BNP Paribas Exane upgraded Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 price target on the stock in a research report on Thursday, January 22nd. Bank of America upgraded Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price target on the stock in a research report on Wednesday, January 28th. Jefferies Financial Group reissued a "hold" rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Finally, Needham & Company LLC lifted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Four analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average price target of $97.52.
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About Microchip Technology
(
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Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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