Boston Partners Purchases 2,795,650 Shares of Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Boston Partners increased their stake in Microchip Technology by 35.3%, acquiring an additional 2,795,650 shares, bringing their total ownership to about 1.99% of the company.
• Several analysts have raised their price targets for Microchip Technology, with Citigroup setting a new target of $90.00, and the consensus rating moving to a "Moderate Buy".
• Microchip Technology's recent quarterly earnings reported $1.08 billion in revenue, exceeding analyst expectations and showing a 13.3% year-over-year decline compared to the previous year.

Boston Partners increased its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,726,413 shares of the semiconductor company's stock after purchasing an additional 2,795,650 shares during the quarter. Boston Partners owned 1.99% of Microchip Technology worth $517,082,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also made changes to their positions in MCHP. Garde Capital Inc. bought a new position in Microchip Technology during the 1st quarter valued at $30,000. Orion Capital Management LLC bought a new position in Microchip Technology during the 4th quarter valued at $41,000. Byrne Asset Management LLC bought a new position in Microchip Technology during the 1st quarter valued at $41,000. GW&K Investment Management LLC boosted its stake in Microchip Technology by 161.0% during the 1st quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after acquiring an additional 578 shares during the last quarter. Finally, American National Bank & Trust bought a new position in Microchip Technology during the 1st quarter valued at $48,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Price Performance

Microchip Technology stock traded down $0.28 during trading hours on Friday, hitting $65.71. 7,744,425 shares of the company traded hands, compared to its average volume of 10,186,693. The firm has a market cap of $35.46 billion, a P/E ratio of -193.26, a P/E/G ratio of 1.93 and a beta of 1.55. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The firm's 50-day simple moving average is $69.75 and its two-hundred day simple moving average is $58.36. Microchip Technology Incorporated has a 1-year low of $34.13 and a 1-year high of $82.87.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.05 billion. During the same quarter last year, the firm posted $0.53 EPS. The business's revenue for the quarter was down 13.3% on a year-over-year basis. As a group, analysts forecast that Microchip Technology Incorporated will post 1.03 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 Friday, September 5th. Stockholders of record on Friday, August 22nd will be given a dividend of $0.455 per share. The ex-dividend date is Friday, August 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. Microchip Technology's dividend payout ratio (DPR) is -535.29%.

Wall Street Analyst Weigh In

A number of research firms have commented on MCHP. The Goldman Sachs Group began coverage on shares of Microchip Technology in a research note on Thursday, July 10th. They set a "buy" rating and a $88.00 price objective on the stock. Needham & Company LLC raised their price target on shares of Microchip Technology from $66.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Citigroup raised their price target on shares of Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Morgan Stanley raised their price target on shares of Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Friday, May 9th. Finally, Susquehanna raised their price target on shares of Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Six analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $76.58.

Insider Activity

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total value of $112,396.70. Following the completion of the transaction, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the transaction, the director owned 3,468 shares of the company's stock, valued at approximately $210,472.92. The trade was a 12.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Microchip Technology Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.