Wolverine Asset Management LLC Acquires New Shares in Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Wolverine Asset Management LLC acquired 58,216 shares of Microchip Technology, worth approximately $2.8 million, as part of a recent investment strategy disclosed in a Form 13F filing.
• Microchip Technology's stock has recently declined by 6.6%, with current trading at $61.87 and its 12-month market performance showing a high of $82.87.
• The company announced a quarterly dividend of $0.455 per share, reflecting an annualized yield of 2.9%, set to be paid on September 5th.

Wolverine Asset Management LLC purchased a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 58,216 shares of the semiconductor company's stock, valued at approximately $2,818,000.

Other institutional investors have also recently bought and sold shares of the company. Goldman Sachs Group Inc. grew its position in shares of Microchip Technology by 138.9% in the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after purchasing an additional 5,136,154 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock worth $306,541,000 after purchasing an additional 3,912,895 shares during the last quarter. Meritage Group LP bought a new stake in Microchip Technology during the fourth quarter worth $145,033,000. Fiduciary Management Inc. WI bought a new stake in Microchip Technology during the fourth quarter worth $119,431,000. Finally, Two Sigma Investments LP bought a new stake in Microchip Technology during the fourth quarter worth $93,196,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Microchip Technology Stock Up 5.8%

NASDAQ MCHP traded up $3.55 during trading hours on Tuesday, hitting $64.50. The company's stock had a trading volume of 12,673,559 shares, compared to its average volume of 10,567,588. Microchip Technology Incorporated has a 52 week low of $34.13 and a 52 week high of $82.87. The company has a market capitalization of $34.81 billion, a PE ratio of -189.71, a price-to-earnings-growth ratio of 1.79 and a beta of 1.55. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The company's 50-day simple moving average is $69.67 and its two-hundred day simple moving average is $58.12.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.05 billion. During the same quarter last year, the firm earned $0.53 EPS. The firm's revenue for the quarter was down 13.3% compared to the same quarter last year. Research analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be given a $0.455 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 annualized dividend and a yield of 2.8%. Microchip Technology's dividend payout ratio (DPR) is presently -535.29%.

Analysts Set New Price Targets

A number of research analysts have recently commented on MCHP shares. B. Riley increased their price target on Microchip Technology from $60.00 to $75.00 and gave the company a "buy" rating in a research note on Friday, May 9th. The Goldman Sachs Group assumed coverage on Microchip Technology in a report on Thursday, July 10th. They set a "buy" rating and a $88.00 price target for the company. Piper Sandler increased their price target on Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a report on Friday. Cantor Fitzgerald assumed coverage on Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price target for the company. Finally, Wall Street Zen upgraded Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. Six analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $76.58.

Insider Activity

In related news, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total value of $112,396.70. Following the transaction, the chief financial officer owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the transaction, the director directly owned 3,468 shares in the company, valued at approximately $210,472.92. The trade was a 12.47% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by company insiders.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.