Van ECK Associates Corp Decreases Holdings in Microchip Technology Incorporated $MCHP

Van ECK Associates Corp decreased its position in Microchip Technology Incorporated (NASDAQ:MCHP) by 7.2% in the second quarter, HoldingsChannel.com reports. The institutional investor owned 742,999 shares of the semiconductor company’s stock after selling 57,426 shares during the quarter. Van ECK Associates Corp’s holdings in Microchip Technology were worth $56,995,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Continuum Advisory LLC purchased a new position in shares of Microchip Technology during the second quarter worth approximately $30,000. Johnson Financial Group Inc. purchased a new stake in shares of Microchip Technology in the 2nd quarter valued at $31,000. Rakuten Securities Inc. bought a new position in shares of Microchip Technology during the 2nd quarter valued at $34,000. PenderFund Capital Management Ltd. bought a new position in shares of Microchip Technology during the 2nd quarter valued at $36,000. Finally, EFG International AG purchased a new position in Microchip Technology in the 4th quarter worth $29,000. 91.51% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at $12,727,140.16. This trade represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO James Eric Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction dated 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 directly owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 9,949 shares of company stock valued at $864,493. 1.79% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

MCHP has been the subject of several analyst reports. Wells Fargo & Company cut their price target on shares of 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. TD Cowen lowered their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research note on Monday, July 13th. UBS Group restated a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Needham & Company LLC upped their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a report on Friday, May 8th. Finally, Truist Financial dropped their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $98.67.

Microchip Technology Price Performance

MCHP stock opened at $72.93 on Friday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The firm has a 50-day moving average of $81.90 and a 200 day moving average of $81.37. The company has a market cap of $39.60 billion, a P/E ratio of 108.85, a PEG ratio of 0.51 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last posted its 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 firm had revenue of $1.48 billion for 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 revenue for the quarter was up 38.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, sell-side analysts forecast that Microchip Technology Incorporated will post 3.16 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a $0.455 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. Microchip Technology’s dividend payout ratio 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.