Microchip Technology Incorporated $MCHP Holdings Cut by Adage Capital Partners GP L.L.C.

Key Points

• Adage Capital Partners GP L.L.C. has decreased its holdings in Microchip Technology by 35.9%, ending the first quarter with 260,800 shares valued at approximately $12.6 million.
• Several institutional investors have recently modified their positions in Microchip Technology, with over 91% of the stock being owned by hedge funds and other institutional investors.
• Analysts have varied opinions on Microchip Technology's stock, with a consensus rating of "Moderate Buy" and a target price of $76.58, reflecting diverse sentiments among investment firms.

Adage Capital Partners GP L.L.C. cut its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.9% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 260,800 shares of the semiconductor company's stock after selling 145,900 shares during the period. Adage Capital Partners GP L.L.C.'s holdings in Microchip Technology were worth $12,625,000 at the end of the most recent reporting period.

Other institutional investors also recently made changes to their positions in the company. First Citizens Bank & Trust Co. grew its stake in shares of Microchip Technology by 468.2% during the 1st quarter. First Citizens Bank & Trust Co. now owns 73,737 shares of the semiconductor company's stock valued at $3,570,000 after buying an additional 60,760 shares during the period. Everhart Financial Group Inc. purchased a new stake in shares of Microchip Technology during the 1st quarter valued at $221,000. Texas Bank & Trust Co purchased a new stake in shares of Microchip Technology during the 4th quarter valued at $792,000. Czech National Bank grew its stake in shares of Microchip Technology by 6.1% during the 1st quarter. Czech National Bank now owns 123,528 shares of the semiconductor company's stock valued at $5,980,000 after buying an additional 7,093 shares during the period. Finally, Sowell Financial Services LLC purchased a new stake in shares of Microchip Technology during the 1st quarter valued at $318,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Down 0.6%

NASDAQ:MCHP traded down $0.38 on Friday, reaching $64.65. The stock had a trading volume of 782,583 shares, compared to its average volume of 10,170,428. 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 has a 50-day moving average of $68.27 and a 200 day moving average of $59.63. The stock has a market cap of $34.89 billion, a P/E ratio of -190.40, a price-to-earnings-growth ratio of 1.85 and a beta of 1.56. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $81.64.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm's revenue for the quarter was down 13.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, research analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's dividend payout ratio is presently -535.29%.

Insider Transactions at Microchip Technology

In other news, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total value of $682,500.00. Following the sale, the director owned 30,665 shares in the company, valued at approximately $2,092,886.25. This represents a 24.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the sale, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.94% of the company's stock.

Wall Street Analyst Weigh In

MCHP has been the subject of several research reports. Stifel Nicolaus boosted their price objective on shares of Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Raymond James Financial boosted their price objective on shares of Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a research note on Friday, August 8th. Rosenblatt Securities boosted their price objective on shares of Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, May 30th. Mizuho upped their price target on shares of Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Finally, Needham & Company LLC upped their price target on shares of Microchip Technology from $66.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $76.58.

Microchip Technology 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.