Allstate Corp Increases Position in Microchip Technology Incorporated $MCHP

Key Points

• Allstate Corp more than doubled its Microchip Technology position in Q4, boosting its stake by 101% to 39,620 shares worth about $2.53 million.
• Microchip Technology reported better-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion versus $1.26 billion expected. Revenue rose 35.1% year over year, and the company also issued Q1 2027 guidance of $0.67-$0.71 EPS.
• Analysts and investors remain broadly positive on MCHP, with multiple price-target increases and an average target price of $97.52. The company also declared a quarterly dividend of $0.455 per share, though insiders recently sold shares and the payout ratio is very high.

Allstate Corp increased its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 101.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 39,620 shares of the semiconductor company's stock after purchasing an additional 19,910 shares during the quarter. Allstate Corp's holdings in Microchip Technology were worth $2,525,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of MCHP. Wolverine Asset Management LLC raised its holdings in Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock valued at $2,416,000 after acquiring an additional 36,957 shares during the period. Vanguard Group Inc. raised its holdings in Microchip Technology by 2.1% during the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company's stock valued at $4,628,692,000 after acquiring an additional 1,507,554 shares during the period. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new stake in Microchip Technology during the 4th quarter valued at $6,691,000. PNC Financial Services Group Inc. raised its holdings in Microchip Technology by 13.5% during the 3rd quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company's stock valued at $13,447,000 after acquiring an additional 24,963 shares during the period. Finally, Natixis Advisors LLC raised its holdings in Microchip Technology by 18.7% during the 3rd quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company's stock valued at $79,184,000 after acquiring an additional 194,048 shares during the period. Institutional investors own 91.51% of the company's stock.

Microchip Technology Stock Down 1.2%

MCHP opened at $96.85 on Thursday. The stock has a market cap of $52.50 billion, a PE ratio of 461.21, a P/E/G ratio of 1.03 and a beta of 1.75. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The business's fifty day simple moving average is $80.81 and its 200 day simple moving average is $72.37.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm's revenue was up 35.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, research analysts expect that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, May 22nd. Microchip Technology's dividend payout ratio is presently 866.67%.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip is being highlighted as a beneficiary of the AI and data-center buildout, with commentary pointing to strong customer engagement and improving operating leverage after its recent quarterly report. Microchip Technology Incorporated (MCHP) Capitalizes on Data Center and AI Boom
• Positive Sentiment: The company launched 3.3 kV HV-D3 mSiC power modules aimed at AI hyperscale data centers, a move that could strengthen its position in high-growth power infrastructure for AI. AI Chips Today - Transforming Power: Microchip's Silicon Carbide Modules Revolutionize Efficiency
• Positive Sentiment: Technical traders are viewing MCHP favorably after the stock moved above its 20-day moving average, which is often seen as a short-term bullish signal. Microchip Technology (MCHP) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Analyst sentiment remains constructive after the May 7 earnings beat, with multiple firms lifting price targets and the stock now viewed as a possible beneficiary of renewed semiconductor demand. Micron Hits a $1 Trillion Valuation: What's Next?

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on MCHP shares. Truist Financial upped their price target on Microchip Technology from $69.00 to $105.00 and gave the company a "hold" rating in a research report on Friday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Bank of America raised shares of Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price target on the stock in a report on Wednesday, January 28th. Zacks Research raised shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Finally, Susquehanna increased their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a report on Friday, May 8th. Four analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $97.52.

Insider Activity

In other news, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $95.48, for a total transaction of $954,800.00. Following the completion of the sale, the director directly owned 20,665 shares in the company, valued at approximately $1,973,094.20. This represents a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $93.44, for a total transaction of $467,200.00. Following the sale, the chief operating officer owned 135,508 shares of the company's stock, valued at approximately $12,661,867.52. This represents a 3.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 545,302 shares of company stock valued at $48,893,475. Company insiders own 1.94% of the company's stock.

Microchip Technology 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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