Key Points
- Director sale: Microchip Technology director Matthew Chapman sold 3,000 shares for about $292,560 at an average price of $97.52, reducing his holdings by 14.52%.
- Strong quarterly results: The semiconductor company reported quarterly EPS of $0.57 versus estimates of $0.50, and revenue of $1.31 billion versus expectations of $1.26 billion. Revenue rose 35.1% year over year.
- Dividend and analyst sentiment: Microchip declared a $0.455 quarterly dividend payable June 5, and Wall Street remains broadly positive, with multiple price-target increases and an overall Moderate Buy rating.
Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) Director Matthew Chapman sold 3,000 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director directly owned 17,665 shares in the company, valued at $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.
Microchip Technology Stock Down 1.4%
Shares of MCHP stock opened at $94.65 on Friday. The stock's 50-day simple moving average is $82.04 and its 200-day simple moving average is $72.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The firm has a market capitalization of $51.31 billion, a PE ratio of 450.74, a P/E/G ratio of 1.01 and a beta of 1.75. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $105.91.
Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company's revenue was up 35.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.11 earnings per share. 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 earnings per share for the current year.
Microchip Technology Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology's dividend payout ratio is currently 866.67%.
Wall Street Analysts Forecast Growth
MCHP has been the topic of several recent research reports. JPMorgan Chase & Co. upped their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Needham & Company LLC upped their target price on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Truist Financial upped their target price on Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research note on Friday, May 8th. Finally, Weiss Ratings upgraded Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, May 22nd. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $97.52.
Read Our Latest Stock Analysis on MCHP
Institutional Trading of Microchip Technology
Hedge funds have recently modified their holdings of the stock. Winnow Wealth LLC purchased a new stake in shares of Microchip Technology in the third quarter worth about $25,000. EFG International AG purchased a new stake in shares of Microchip Technology in the fourth quarter worth about $29,000. Miller Capital Partners Inc. purchased a new stake in shares of Microchip Technology in the fourth quarter worth about $29,000. Garton & Associates Financial Advisors LLC purchased a new position in Microchip Technology during the fourth quarter worth approximately $33,000. Finally, Reflection Asset Management purchased a new position in Microchip Technology during the fourth quarter worth approximately $33,000. Hedge funds and other institutional investors own 91.51% of the company's stock.
About Microchip Technology
(
Get Free Report)
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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