Aberdeen Group plc Acquires 15,238 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Aberdeen Group increased its Microchip Technology stake by 3.4% in the second quarter, acquiring 15,238 shares and bringing its holdings to 460,174 shares worth approximately $42 million. Institutional investors collectively own 91.51% of MCHP.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $98.85, despite one brokerage lowering its target to $90.
• Microchip reported quarterly adjusted earnings of $0.76 per share and revenue of $1.48 billion, beating estimates and marking 38% year-over-year revenue growth. The company also announced a $0.455 quarterly dividend, equivalent to a 2.3% yield.

Aberdeen Group plc boosted its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 3.4% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 460,174 shares of the semiconductor company's stock after acquiring an additional 15,238 shares during the period. Aberdeen Group plc owned about 0.08% of Microchip Technology worth $41,968,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also bought and sold shares of MCHP. AQR Capital Management LLC grew its position in Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after purchasing an additional 5,835 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after buying an additional 616 shares in the last quarter. Cresset Asset Management LLC grew its stake in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after acquiring an additional 589 shares during the period. AXA S.A. grew its stake in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after acquiring an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina increased its holdings in Microchip Technology by 1.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after acquiring an additional 3,851 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently commented on MCHP. Susquehanna increased their price objective on Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research note on Friday, May 8th. JPMorgan Chase & Co. upped 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. Zacks Research upgraded shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. TD Cowen decreased their price target on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Finally, Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.85.

Microchip Technology Stock Up 1.9%

Shares of Microchip Technology stock opened at $79.17 on Friday. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91. The company has a market cap of $42.99 billion, a P/E ratio of 118.17, a PEG ratio of 0.61 and a beta of 1.76. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. The firm has a fifty day moving average of $85.72 and a two-hundred day moving average of $81.47.

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, topping the consensus estimate of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter last year, the business posted $0.27 earnings per share. Microchip Technology's revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, analysts forecast that Microchip Technology Incorporated will post 2.81 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. Shareholders of record on Monday, August 24th will be paid a dividend of $0.455 per share. The ex-dividend date is Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.3%. Microchip Technology's payout ratio is presently 271.64%.

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 shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 130,508 shares of the company's stock, valued at $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. Over the last three months, insiders have sold 16,667 shares of company stock valued at $1,580,580. Company insiders own 1.79% of the company's stock.

Microchip Technology Company Profile

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.

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