Buttonwood Financial Advisors Inc. Sells 14,665 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Buttonwood Financial Advisors reduced its Microchip Technology stake by 15.7% in the fourth quarter, selling 14,665 shares and leaving it with 78,762 shares worth about $5.0 million.
• Microchip Technology’s latest earnings beat expectations, with EPS of $0.57 on revenue of $1.31 billion, while quarterly revenue rose 35.1% year over year. The company also issued Q1 2027 guidance of $0.670-$0.710 EPS.
• Analysts remain generally positive on the stock, with a consensus “Moderate Buy” rating and an average price target of $96.43, though recent insider selling included CEO Steve Sanghi’s 416,581-share sale under a 10b5-1 plan.

Buttonwood Financial Advisors Inc. trimmed its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 15.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 78,762 shares of the semiconductor company's stock after selling 14,665 shares during the period. Microchip Technology comprises about 1.7% of Buttonwood Financial Advisors Inc.'s investment portfolio, making the stock its 16th largest position. Buttonwood Financial Advisors Inc.'s holdings in Microchip Technology were worth $5,019,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also recently bought and sold shares of the company. Winnow Wealth LLC bought a new stake in Microchip Technology in the third quarter valued at $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology during the third quarter worth $28,000. Quent Capital LLC bought a new stake in shares of Microchip Technology during the third quarter worth $32,000. GoalVest Advisory LLC grew its holdings in shares of Microchip Technology by 174.0% during 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 bought a new stake in shares of Microchip Technology during the fourth quarter worth $38,000. 91.51% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Needham & Company LLC increased their target price on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Zacks Research cut Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. KeyCorp restated an "overweight" rating and set a $85.00 target price on shares of Microchip Technology in a report on Friday, February 6th. UBS Group increased their target price on Microchip Technology from $115.00 to $130.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, Wells Fargo & Company increased their target price on Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average price target of $96.43.

Insider Transactions at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of the firm's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. This trade represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 526,552 shares of company stock valued at $47,130,465 in the last quarter. 1.94% of the stock is owned by company insiders.

Microchip Technology Price Performance

Microchip Technology stock opened at $97.70 on Wednesday. The business's 50-day simple moving average is $74.68 and its 200 day simple moving average is $69.88. The stock has a market cap of $52.87 billion, a price-to-earnings ratio of 465.26, a P/E/G ratio of 1.26 and a beta of 1.75. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91. 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 (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm's quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, research analysts anticipate that Microchip Technology Incorporated will post 2.14 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be issued a $0.455 dividend. The ex-dividend date is Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 1.9%. Microchip Technology's dividend payout ratio (DPR) is currently 866.67%.

Microchip Technology Company 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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