USA Financial Formulas Makes New Investment in Microchip Technology Incorporated $MCHP

USA Financial Formulas bought a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP) in the first quarter, Holdings Channel reports. The fund bought 10,653 shares of the semiconductor company’s stock, valued at approximately $688,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Miller Capital Partners Inc. acquired a new stake in shares of Microchip Technology during the 4th quarter valued at $29,000. EFG International AG bought a new stake in shares of Microchip Technology during the 4th quarter worth $29,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of Microchip Technology by 4,663.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after acquiring an additional 513 shares during the last quarter. Garton & Associates Financial Advisors LLC acquired a new position in shares of Microchip Technology in the 4th quarter worth $33,000. Finally, Reflection Asset Management acquired a new stake in shares of Microchip Technology during the fourth quarter worth $33,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Insiders Place Their Bets

In related news, CFO James Eric Bjornholt sold 3,667 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 business’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer 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. The disclosure for this sale is available in the SEC filing. Insiders sold 16,667 shares of company stock valued at $1,580,580 over the last quarter. Insiders own 1.79% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on MCHP shares. Rosenblatt Securities reaffirmed a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a report on Friday, August 7th. Truist Financial dropped their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. Wall Street Zen upgraded Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. raised their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $98.85.

Microchip Technology Trading Up 1.9%

Shares of NASDAQ:MCHP opened at $79.17 on Friday. The firm has a fifty day moving average of $85.72 and a two-hundred day moving average of $81.47. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91. The firm has a market capitalization of $42.99 billion, a P/E ratio of 118.17, a price-to-earnings-growth ratio of 0.62 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The business’s quarterly revenue was up 38.0% on a year-over-year basis. During the same period last year, the business earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, equities analysts expect that Microchip Technology Incorporated will post 2.81 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.3%. The ex-dividend date is Monday, August 24th. Microchip Technology’s dividend payout ratio (DPR) is 271.64%.

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.