Bristol Gate Capital Partners Inc. Acquires 466,458 Shares of Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Bristol Gate Capital Partners Inc. increased its stake in Microchip Technology by 39.4%, acquiring an additional 466,458 shares, bringing its total ownership to 1,650,617 shares.
• Microchip Technology reported $0.11 earnings per share for its latest quarter, beating estimated earnings and revenues but showing a 26.8% year-over-year revenue decline.
• The company has announced a quarterly dividend of $0.455 per share, resulting in an annualized dividend yield of 2.57%.

Bristol Gate Capital Partners Inc. grew its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 39.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,650,617 shares of the semiconductor company's stock after buying an additional 466,458 shares during the period. Microchip Technology accounts for approximately 3.9% of Bristol Gate Capital Partners Inc.'s portfolio, making the stock its 19th largest holding. Bristol Gate Capital Partners Inc. owned approximately 0.31% of Microchip Technology worth $79,906,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Invesco Ltd. grew its holdings in shares of Microchip Technology by 9.5% during the fourth quarter. Invesco Ltd. now owns 10,247,908 shares of the semiconductor company's stock worth $587,718,000 after purchasing an additional 890,819 shares in the last quarter. FIL Ltd grew its holdings in shares of Microchip Technology by 9.0% during the fourth quarter. FIL Ltd now owns 7,877,482 shares of the semiconductor company's stock worth $451,774,000 after purchasing an additional 653,705 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Microchip Technology by 4.7% during the fourth quarter. Northern Trust Corp now owns 6,958,502 shares of the semiconductor company's stock worth $399,070,000 after purchasing an additional 311,796 shares in the last quarter. Franklin Resources Inc. grew its holdings in shares of Microchip Technology by 90.0% during the fourth quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company's stock worth $364,792,000 after purchasing an additional 3,013,162 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its holdings in shares of Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock worth $306,541,000 after purchasing an additional 3,912,895 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total value of $29,980.86. Following the transaction, the director owned 3,468 shares of the company's stock, valued at $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. 1.94% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts have issued reports on MCHP shares. Morgan Stanley upped their target price on Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Friday, May 9th. KeyCorp upped their target price on Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. B. Riley upped their target price on Microchip Technology from $60.00 to $75.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Raymond James Financial upped their target price on Microchip Technology from $60.00 to $65.00 and gave the stock a "strong-buy" rating in a research note on Friday, May 9th. Finally, UBS Group upped their target price on Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Six investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $75.70.

Microchip Technology Stock Down 1.8%

MCHP traded down $1.23 during trading on Friday, reaching $66.36. The stock had a trading volume of 11,541,664 shares, compared to its average volume of 7,927,445. The stock's 50 day moving average is $68.64 and its two-hundred day moving average is $57.76. The company has a current ratio of 2.59, a quick ratio of 1.47 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $35.81 billion, a price-to-earnings ratio of -6,636.00, a P/E/G ratio of 1.95 and a beta of 1.55. Microchip Technology Incorporated has a one year low of $34.13 and a one year high of $82.87.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.10 by $0.01. The business had revenue of $970.50 million during the quarter, compared to the consensus estimate of $962.86 million. Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. The firm's quarterly revenue was down 26.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.57 earnings per share. As a group, analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.455 per share. The ex-dividend date was Thursday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.7%. Microchip Technology's dividend payout ratio (DPR) is presently -18,200.00%.

About Microchip Technology

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.