Microchip Technology Incorporated $MCHP Shares Bought by Alight Capital Management LP

Key Points

• Alight Capital Management LP increased its stake in Microchip Technology by 309.1% during the first quarter, purchasing an additional 34,000 shares to reach a total of 45,000 shares worth approximately $2.18 million.
• Several brokerages have upgraded their target prices for Microchip Technology, with UBS Group raising it to $85.00 and Citigroup to $90.00, indicating a overall positive outlook for the stock.
• Microchip Technology recently announced a quarterly dividend of $0.455 per share which translates to an annualized yield of 2.9%, despite having a negative dividend payout ratio.

Alight Capital Management LP increased its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 309.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 45,000 shares of the semiconductor company's stock after purchasing an additional 34,000 shares during the quarter. Microchip Technology makes up approximately 1.0% of Alight Capital Management LP's portfolio, making the stock its 26th biggest position. Alight Capital Management LP's holdings in Microchip Technology were worth $2,178,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in MCHP. Orbis Allan Gray Ltd purchased a new stake in Microchip Technology during the first quarter worth approximately $369,612,000. Invesco Ltd. lifted its stake in Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after purchasing an additional 6,459,123 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Microchip Technology by 138.9% during the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock worth $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. Finally, Boston Partners lifted its stake in Microchip Technology by 35.3% during the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock worth $517,082,000 after purchasing an additional 2,795,650 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Insiders Place Their Bets

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

Analyst Upgrades and Downgrades

MCHP has been the subject of several recent analyst reports. Truist Financial boosted their target price on Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a research note on Wednesday, June 18th. The Goldman Sachs Group started coverage on Microchip Technology in a research note on Thursday, July 10th. They issued a "buy" rating and a $88.00 price objective for the company. Needham & Company LLC boosted their price objective on Microchip Technology from $66.00 to $77.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Susquehanna boosted their price objective on Microchip Technology from $60.00 to $90.00 and gave the company a "positive" rating in a research note on Tuesday, July 22nd. Finally, Mizuho boosted their price objective on Microchip Technology from $78.00 to $85.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $76.58.

Microchip Technology Stock Performance

Shares of Microchip Technology stock traded up $1.49 during trading hours on Friday, hitting $65.92. 7,765,182 shares of the company were exchanged, compared to its average volume of 8,738,270. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $81.64. 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 business has a 50-day moving average of $68.82 and a 200-day moving average of $59.53. The stock has a market capitalization of $35.58 billion, a price-to-earnings ratio of -193.88, a P/E/G ratio of 1.89 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same quarter in the prior year, the business earned $0.53 earnings per share. The company's quarterly revenue was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were issued a dividend of $0.455 per share. 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 currently -535.29%.

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.