Microchip Technology Incorporated to Issue Quarterly Dividend of $0.46 (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Thursday, May 7th. Stockholders of record on Friday, May 22nd will be given a dividend of 0.455 per share by the semiconductor company on Friday, June 5th. This represents a c) dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, May 22nd.

Microchip Technology has raised its dividend by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 23 consecutive years. Microchip Technology has a payout ratio of 72.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Microchip Technology to earn $2.14 per share next year, which means the company should continue to be able to cover its $1.82 annual dividend with an expected future payout ratio of 85.0%.

Microchip Technology Trading Down 1.3%

Microchip Technology stock opened at $101.58 on Friday. The firm’s 50-day moving average is $73.27 and its 200-day moving average is $69.20. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $103.24. The company has a market cap of $54.97 billion, a P/E ratio of -350.28, a PEG ratio of 1.38 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the firm posted $0.11 EPS. The company’s revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts expect that Microchip Technology will post 1.16 earnings per share for the current year.

Analysts Set New Price Targets

MCHP has been the topic of a number of recent research reports. JPMorgan Chase & Co. raised their price target on shares of Microchip Technology from $85.00 to $95.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th. B. Riley Financial raised their price target on shares of Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. Stifel Nicolaus set a $90.00 price target on shares of Microchip Technology in a research report on Friday, February 6th. Needham & Company LLC raised their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday. Finally, 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. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $87.78.

Microchip Technology Company Profile

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.