Assenagon Asset Management S.A. Sells 1,518,370 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Assenagon Asset Management S.A. cut its Microchip Technology stake by 60% in the first quarter, selling 1,518,370 shares and leaving it with about 1,011,997 shares valued at roughly $65.4 million.
• Several insiders also sold shares, including CEO Steve Sanghi and COO Richard J. Simoncic, with insiders selling 553,302 shares worth about $49.7 million over the last 90 days.
• Microchip reported better-than-expected quarterly results, with EPS of $0.57 on revenue of $1.31 billion, and analysts have mostly bullish views with a consensus Moderate Buy rating and price target of $98.18.

Assenagon Asset Management S.A. trimmed its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 60.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,011,997 shares of the semiconductor company's stock after selling 1,518,370 shares during the period. Assenagon Asset Management S.A. owned approximately 0.19% of Microchip Technology worth $65,385,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also made changes to their positions in the business. EFG International AG acquired a new stake in Microchip Technology in the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. purchased a new position in Microchip Technology in the 4th quarter worth $29,000. Garton & Associates Financial Advisors LLC acquired a new stake in Microchip Technology during the 4th quarter worth about $33,000. Reflection Asset Management acquired a new stake in Microchip Technology during the 4th quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in Microchip Technology by 4,663.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 513 shares during the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the transaction, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. This represents a 0.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 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 shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the transaction, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. This trade represents a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 553,302 shares of company stock valued at $49,673,635 over the last ninety days. 1.94% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Rosenblatt Securities increased their price objective on Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a report on Friday, May 8th. Susquehanna upped their target price on Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. raised their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Citigroup upped their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. Finally, Truist Financial raised their target price on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.18.

Microchip Technology Stock Up 1.8%

MCHP stock opened at $94.12 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 debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The firm's fifty day moving average is $92.74 and its 200 day moving average is $78.30. The firm has a market cap of $51.02 billion, a PE ratio of 448.21, a P/E/G ratio of 0.95 and a beta of 1.73.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm posted $0.11 earnings per share. The company's revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, research analysts forecast that Microchip Technology Incorporated will post 2.66 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a $0.455 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology's payout ratio is 866.67%.

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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