Muhlenkamp & Co. Inc. Takes $18.53 Million Position in Microchip Technology Incorporated $MCHP

Muhlenkamp & Co. Inc. acquired a new stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 203,139 shares of the semiconductor company’s stock, valued at approximately $18,526,000. Microchip Technology comprises approximately 5.4% of Muhlenkamp & Co. Inc.’s portfolio, making the stock its 7th largest holding.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Continuum Advisory LLC acquired a new position in shares of Microchip Technology in the second quarter valued at approximately $30,000. Johnson Financial Group Inc. purchased a new position in shares of Microchip Technology during the second quarter valued at approximately $31,000. Rakuten Securities Inc. acquired a new stake in Microchip Technology during the second quarter worth approximately $34,000. PenderFund Capital Management Ltd. acquired a new stake in Microchip Technology during the second quarter worth approximately $36,000. Finally, EFG International AG purchased a new stake in Microchip Technology in the 4th quarter worth approximately $29,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on MCHP shares. Citigroup cut their price target on Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a report on Friday, August 7th. Cantor Fitzgerald restated an “overweight” rating and set a $125.00 price objective on shares of Microchip Technology in a report on Monday, August 17th. Wells Fargo & Company lowered their price objective on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research report on Monday, July 20th. JPMorgan Chase & Co. upped their target price on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Finally, Zacks Research lowered Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $98.67.

Microchip Technology Stock Down 3.4%

Shares of NASDAQ:MCHP opened at $72.93 on Friday. The stock has a 50-day simple moving average of $81.90 and a 200-day simple moving average of $81.37. The stock has a market capitalization of $39.60 billion, a P/E ratio of 108.85, a PEG ratio of 0.53 and a beta of 1.76. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. Microchip Technology’s revenue for the quarter was up 38.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities analysts forecast that Microchip Technology Incorporated will post 3.16 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s dividend payout ratio (DPR) is currently 271.64%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the company’s 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 sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,949 shares of company stock worth $864,493 in the last 90 days. Company insiders own 1.79% of the company’s stock.

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.