Assenagon Asset Management S.A. Trims Position in Microchip Technology Incorporated $MCHP

Key Points

• Assenagon Asset Management cut its Microchip Technology position by 57.2% in the second quarter, selling 578,417 shares and retaining 433,580 shares worth about $39.5 million. Institutional investors still own 91.51% of the company.
• Microchip’s fiscal Q1 2027 results beat expectations, with EPS of $0.76 and revenue of $1.48 billion, up 38% year over year. Management issued stronger-than-expected fiscal Q2 guidance of $0.91–$0.95 EPS and approximately $1.6 billion in revenue, citing recovering demand and AI-related growth.
• Analysts remain generally positive, with a consensus rating of “Moderate Buy” and a $98.85 target price, although Truist lowered its target to $90 and maintained a “hold” rating. Microchip also declared a quarterly dividend of $0.455 per share, representing an annualized yield of roughly 2.1%.

Assenagon Asset Management S.A. cut its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 57.2% in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 433,580 shares of the semiconductor company's stock after selling 578,417 shares during the period. Assenagon Asset Management S.A. owned 0.08% of Microchip Technology worth $39,542,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in shares of Microchip Technology by 2.0% during the fourth quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock worth $4,683,824,000 after purchasing an additional 1,430,781 shares in the last quarter. State Street Corp boosted its holdings in Microchip Technology by 2.8% in the 4th quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock worth $1,839,153,000 after acquiring an additional 783,157 shares during the period. Boston Partners grew its position in Microchip Technology by 9.5% in the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock valued at $1,044,024,000 after acquiring an additional 1,406,885 shares in the last quarter. Geode Capital Management LLC grew its position in Microchip Technology by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock valued at $977,638,000 after acquiring an additional 213,188 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Microchip Technology by 4.8% during the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock valued at $955,298,000 after purchasing an additional 684,561 shares during the period. Hedge funds and other institutional investors own 91.51% of the company's stock.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. The trade was a 11.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 company's 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 completion of the sale, the chief operating officer directly owned 135,508 shares of the company's stock, valued at $12,661,867.52. The trade was a 3.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 26,750 shares of company stock worth $2,543,170. Company insiders own 1.79% of the company's stock.

Analyst Upgrades and Downgrades

MCHP has been the subject of several analyst reports. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Cantor Fitzgerald reissued an "overweight" rating and issued a $125.00 price objective on shares of Microchip Technology in a research report on Monday, August 3rd. Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Rosenblatt Securities reaffirmed a "buy" rating and set a $120.00 target price on shares of Microchip Technology in a research report on Friday. Finally, Needham & Company LLC lifted their target price on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $98.85.

Key Microchip Technology News

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

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip's data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

Microchip Technology Stock Up 13.9%

Shares of Microchip Technology stock opened at $84.69 on Friday. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The firm has a market cap of $45.99 billion, a P/E ratio of 126.40, a P/E/G ratio of 0.85 and a beta of 1.76. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The business has a 50-day moving average price of $87.14 and a 200 day moving average price of $81.30.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm's revenue was up 38.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, sell-side analysts forecast that Microchip Technology Incorporated will post 2.7 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be given a dividend of $0.455 per share. The ex-dividend date is Monday, August 24th. This represents a $1.82 annualized dividend and a dividend yield of 2.1%. Microchip Technology's payout ratio is currently 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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