Bank of America Corp DE Decreases Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Bank of America reduced its Microchip Technology stake by 5.8% in the first quarter, selling 703,494 shares and retaining 11.4 million shares worth about $736.7 million. Institutional investors and hedge funds collectively own 91.51% of the company.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $99.76. Several firms recently raised their targets to between $105 and $125.
• Microchip reported quarterly adjusted earnings of $0.57 per share and revenue of $1.31 billion, beating estimates and increasing revenue 35.1% year over year. The company also maintains a quarterly dividend of $0.455 per share, equivalent to a 2.4% annual yield.

Bank of America Corp DE cut its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 5.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 11,402,205 shares of the semiconductor company's stock after selling 703,494 shares during the period. Bank of America Corp DE owned approximately 2.11% of Microchip Technology worth $736,696,000 at the end of the most recent reporting period.

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

Insider Buying and Selling

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the firm's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Matthew W. Chapman sold 3,000 shares of Microchip Technology stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the sale, the director owned 17,665 shares in the company, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 26,750 shares of company stock valued at $2,543,170. Insiders own 1.79% of the company's stock.

Analyst Ratings Changes

MCHP has been the topic of a number of recent analyst reports. Susquehanna increased their price target on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $125.00 target price on shares of Microchip Technology in a research note on Wednesday, May 13th. JPMorgan Chase & Co. increased their target price on Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Finally, Truist Financial lifted their price target on Microchip Technology from $69.00 to $105.00 and gave the company a "hold" rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average target price of $99.76.

Microchip Technology Stock Down 1.0%

NASDAQ MCHP opened at $74.29 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. 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 $88.87 and a two-hundred day moving average price of $81.15. The stock has a market cap of $40.34 billion, a PE ratio of 353.78, a P/E/G ratio of 0.75 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company's revenue was up 35.1% on a year-over-year basis. During the same period last 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, sell-side analysts predict that Microchip Technology Incorporated will post 2.7 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were issued a $0.455 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. Microchip Technology's dividend payout ratio (DPR) 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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