Key Points
- Microchip Technology COO Richard Simoncic sold 5,000 shares on June 4 at an average price of $97.52, totaling $487,600. The sale reduced his direct ownership by 3.69% and was disclosed in an SEC filing.
- The company reported stronger-than-expected quarterly results, posting $0.57 EPS versus the $0.50 consensus and revenue of $1.31 billion versus $1.26 billion expected. Revenue rose 35.1% year over year, and Microchip issued Q1 2027 guidance of $0.67 to $0.71 EPS.
- Analyst sentiment remains broadly positive, with several firms maintaining or raising price targets and the stock carrying a consensus rating of “Moderate Buy.” The average price target cited was $97.52, roughly in line with the insider sale price.
Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) COO Richard Simoncic sold 5,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.
Microchip Technology Trading Up 3.4%
Microchip Technology stock opened at $91.37 on Tuesday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The company has a market capitalization of $49.53 billion, a price-to-earnings ratio of 435.12, a PEG ratio of 0.93 and a beta of 1.73. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91. The company's fifty day moving average price is $85.54 and its two-hundred day moving average price is $74.62.
Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its 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. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business's quarterly revenue was up 35.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts forecast that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.
Microchip Technology Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date was Friday, May 22nd. Microchip Technology's dividend payout ratio is 866.67%.
Wall Street Analyst Weigh In
MCHP has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. UBS Group restated a "buy" rating on shares of Microchip Technology in a report on Tuesday, June 2nd. Argus upgraded shares of Microchip Technology to a "strong-buy" rating in a report on Monday, February 9th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $125.00 target price on shares of Microchip Technology in a research note on Wednesday, May 13th. Finally, Needham & Company LLC increased their target price on shares of Microchip Technology from $84.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $97.52.
Get Our Latest Research Report on Microchip Technology
Microchip Technology News Roundup
Here are the key news stories impacting Microchip Technology this week:
Institutional Inflows and Outflows
A number of 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 stake 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 purchasing an additional 5,590,210 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in Microchip Technology by 25.7% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock worth $709,506,000 after purchasing an additional 2,257,932 shares during the period. Holocene Advisors LP lifted its stake in Microchip Technology by 77.0% during the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock worth $302,447,000 after purchasing an additional 2,049,249 shares during the period. Finally, Rafferty Asset Management LLC lifted its stake in Microchip Technology by 41.0% during the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock worth $436,559,000 after purchasing an additional 1,803,945 shares during the period. 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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