LHM Inc. Makes New Investment in Microchip Technology Incorporated $MCHP

LHM Inc. acquired a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP) during the fourth quarter, Holdings Channel.com reports. The fund acquired 82,086 shares of the semiconductor company’s stock, valued at approximately $5,231,000. Microchip Technology accounts for approximately 1.9% of LHM Inc.’s holdings, making the stock its 18th largest holding.

A number of other hedge funds and other institutional investors have also bought and sold shares of MCHP. Vanguard Group Inc. increased its holdings in shares of Microchip Technology by 2.0% in the fourth quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company’s stock worth $4,683,824,000 after purchasing an additional 1,430,781 shares during the period. Boston Partners raised its holdings in shares of Microchip Technology by 9.5% in the 3rd quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after acquiring an additional 1,406,885 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Microchip Technology by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company’s stock valued at $977,638,000 after acquiring an additional 213,188 shares during the last quarter. Victory Capital Management Inc. grew its holdings in shares of Microchip Technology by 11.3% during the third quarter. Victory Capital Management Inc. now owns 12,006,088 shares of the semiconductor company’s stock worth $806,821,000 after purchasing an additional 1,215,939 shares in the last quarter. Finally, Bank of America Corp DE increased its position in shares of Microchip Technology by 18.8% in the third quarter. Bank of America Corp DE now owns 11,419,944 shares of the semiconductor company’s stock worth $733,389,000 after purchasing an additional 1,803,831 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have issued reports on MCHP shares. Citigroup lifted their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. UBS Group raised their price target on Microchip Technology from $115.00 to $130.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Weiss Ratings upgraded Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 22nd. Stifel Nicolaus set a $90.00 price target on Microchip Technology in a research report on Friday, February 6th. Finally, Argus upgraded shares of Microchip Technology to a “strong-buy” rating in a research report on Monday, February 9th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and an average price target of $97.52.

Key Microchip Technology News

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip’s presentation at TD Cowen’s Technology, Media & Telecom Conference kept investor focus on management’s latest outlook and execution, which can reinforce confidence in the company’s AI, data center, and industrial demand story. Microchip Technology Incorporated (MCHP) Presents at TD Cowen’s 54th Annual Technology, Media & Telecom Conference Transcript
• Positive Sentiment: New commentary highlighted Microchip as an AI semiconductor beneficiary, citing strong demand trends and improving operating leverage after its recent earnings beat, which supports the bullish case for the stock. Microchip Technology Incorporated (MCHP) Capitalizes on Data Center and AI Boom
• Positive Sentiment: Technical coverage said MCHP recently moved above its 20-day moving average, signaling short-term momentum and suggesting traders are seeing a bullish breakout. Microchip Technology (MCHP) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Analyst sentiment remains constructive, with several firms reiterating buy ratings and raising price targets after the earnings report, reflecting confidence in the company’s growth and outlook. Why These 3 Automotive & Industrial Chip Stocks Just Soared
• Neutral Sentiment: Microchip was also mentioned in broader “AI stock” and “AI chip” lists, which adds visibility but does not by itself change the company’s fundamentals. 5 AI Stocks to Buy as Markets Defy “Sell in May and Go Away” Adage
• Negative Sentiment: Recent insider selling by the CFO and COO may create some caution among investors, even though the trades were small and the CFO sale was made under a pre-arranged 10b5-1 plan. Insider Selling: Microchip Technology (NASDAQ:MCHP) CFO Sells 3,667 Shares of Stock

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares of the company’s stock, valued at $2,596,428.51. This represents a 11.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $95.48, for a total value of $954,800.00. Following the completion of the sale, the director directly owned 20,665 shares in the company, valued at $1,973,094.20. This represents a 32.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 545,302 shares of company stock valued at $48,893,475 in the last 90 days. Corporate insiders own 1.94% of the company’s stock.

Microchip Technology Trading Down 0.8%

Shares of MCHP stock opened at $96.04 on Friday. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a market cap of $52.06 billion, a price-to-earnings ratio of 457.36, a PEG ratio of 1.02 and a beta of 1.75. 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 stock has a 50 day simple moving average of $81.44 and a 200-day simple moving average of $72.65.

Microchip Technology (NASDAQ:MCHP) 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. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm’s revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts expect that Microchip Technology Incorporated will post 2.58 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be paid 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 yield of 1.9%. Microchip Technology’s dividend payout ratio (DPR) is currently 866.67%.

About Microchip Technology

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.