Bank Julius Baer & Co. Ltd Zurich Grows Stake in Microchip Technology Incorporated $MCHP

Key Points

• Bank Julius Baer increased its Microchip Technology stake by 391.9% in the fourth quarter, ending with 35,406 shares worth about $2.28 million.
• Microchip reported strong quarterly results, earning $0.57 per share on revenue of $1.31 billion, both above expectations, with revenue up 35.1% year over year.
• The company also lifted its outlook and is drawing mixed but generally bullish analyst attention, while insiders have been selling shares and Microchip recently declared a $0.455 quarterly dividend.

Bank Julius Baer & Co. Ltd Zurich grew its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 391.9% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 35,406 shares of the semiconductor company's stock after purchasing an additional 28,208 shares during the quarter. Bank Julius Baer & Co. Ltd Zurich's holdings in Microchip Technology were worth $2,283,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Winnow Wealth LLC purchased a new position in Microchip Technology in the third quarter worth $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology in the third quarter worth $28,000. Quent Capital LLC purchased a new position in Microchip Technology in the third quarter worth $32,000. GoalVest Advisory LLC grew its holdings in Microchip Technology by 174.0% in the fourth quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 348 shares during the last quarter. Finally, Board of the Pension Protection Fund purchased a new position in Microchip Technology in the fourth quarter worth $38,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the sale, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 526,552 shares of company stock valued at $47,130,465 over the last 90 days. 1.94% of the stock is currently owned by corporate insiders.

Microchip Technology Price Performance

Shares of MCHP opened at $93.85 on Friday. The firm has a market capitalization of $50.79 billion, a PE ratio of 446.93, a price-to-earnings-growth ratio of 1.19 and a beta of 1.75. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The company's fifty day moving average price is $76.12 and its 200-day moving average price is $70.51.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business's quarterly revenue was up 35.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts predict that Microchip Technology Incorporated will post 2.21 EPS for the current year.

Microchip Technology Dividend Announcement

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 issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, May 22nd. Microchip Technology's dividend payout ratio is presently 866.67%.

Analysts Set New Price Targets

MCHP has been the topic of several analyst reports. Weiss Ratings lowered shares of Microchip Technology from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 8th. Wells Fargo & Company lifted their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Citigroup lifted their price target on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Mizuho lifted their price target on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an "outperform" rating in a report on Friday, February 6th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $97.52.

Microchip Technology News Summary

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

• Positive Sentiment: Microchip launched the EX-423 Evacuated Miniature Crystal Oscillator, a rugged low-power timing solution aimed at high-reliability markets such as GPS/GNSS, military radios, medical devices, seismic systems, and satellite communications. The new product broadens Microchip’s timing portfolio and could support longer-term growth in mission-critical applications. Article Title
• Positive Sentiment: Zacks Research upgraded Microchip Technology from “hold” to “strong-buy,” which can improve investor sentiment by reinforcing a more bullish view on the stock. Article Title
• Positive Sentiment: Cantor Fitzgerald reaffirmed its overweight rating on Microchip, adding to the constructive analyst tone around the name. Article Title
• Positive Sentiment: One report said Microchip’s price target was increased by 29.69% to $115.23, suggesting Wall Street sees additional upside from current levels. Article Title
• Neutral Sentiment: A market recap noted that Microchip stock underperformed some competitors on Wednesday, but the headline does not point to a new fundamental issue. Article Title
• Neutral Sentiment: Another article highlighted Microchip’s historical returns over the past decade, which is informative but unlikely to affect near-term trading. Article Title

About Microchip Technology

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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