14,871 Microchip Technology Incorporated $MCHP Shares Sold by General Partner Inc.

Key Points

• General Partner Inc. cut its Microchip Technology stake by 96.1%, selling 14,871 shares and retaining 600 shares worth approximately $47,000. Institutional investors and hedge funds collectively own 91.51% of the company.
• Microchip Technology reported quarterly earnings of $0.76 per share, beating estimates by $0.06, while revenue rose 38% year over year to $1.48 billion. Shares traded at $81.52, and the company declared a quarterly dividend of $0.455 per share, representing a 2.2% yield.
• Analyst sentiment remains cautiously positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $98.67, despite some recent downgrades and target-price reductions.

General Partner Inc. trimmed its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 96.1% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 600 shares of the semiconductor company's stock after selling 14,871 shares during the quarter. General Partner Inc.'s holdings in Microchip Technology were worth $47,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. TOP Private Wealth LLC. acquired a new stake in Microchip Technology during the 2nd quarter valued at approximately $29,000. Continuum Advisory LLC bought a new stake in shares of Microchip Technology in the 2nd quarter valued at $30,000. Johnson Financial Group Inc. bought a new stake in shares of Microchip Technology in the 2nd quarter valued at $31,000. Rakuten Securities Inc. acquired a new stake in shares of Microchip Technology during the second quarter worth $34,000. Finally, PenderFund Capital Management Ltd. bought a new position in Microchip Technology during the second quarter worth $36,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, CFO James Bjornholt sold 4,112 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company's stock.

Microchip Technology Stock Up 0.2%

Shares of MCHP stock traded up $0.20 during trading hours on Monday, reaching $81.52. The company had a trading volume of 1,768,522 shares, compared to its average volume of 10,098,368. The company has a market cap of $44.26 billion, a price-to-earnings ratio of 121.57, a price-to-earnings-growth ratio of 0.57 and a beta of 1.77. 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 12 month low of $48.52 and a 12 month high of $105.91. The business has a fifty day simple moving average of $75.70 and a 200-day simple moving average of $81.73.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. The company 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%. The firm's revenue was up 38.0% on a year-over-year basis. During the same period last year, the firm earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, research analysts expect that Microchip Technology Incorporated will post 3.16 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were given a $0.4550 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date was Monday, August 24th. Microchip Technology's dividend payout ratio (DPR) is 271.64%.

Analysts Set New Price Targets

MCHP has been the topic of a number of recent analyst reports. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th. Wells Fargo & Company decreased their target price on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating for the company in a research note on Monday, July 20th. Weiss Ratings raised Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. BMO Capital Markets started coverage on Microchip Technology in a report on Friday, August 21st. They set an "outperform" rating and a $95.00 price target on the stock. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $120.00 price objective on shares of Microchip Technology in a research report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $98.67.

Microchip Technology Profile

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company's product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.

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