Caitong International Asset Management Co. Ltd Acquires Shares of 43,173 Microchip Technology Incorporated $MCHP

Key Points

• Caitong International Asset Management acquired 43,173 shares of Microchip Technology worth approximately $3.94 million, making MCHP about 0.5% of its portfolio. Institutional investors collectively own 91.51% of the company.
• Microchip reported quarterly earnings of $0.76 per share and revenue of $1.48 billion, beating estimates and marking 38% year-over-year revenue growth.
• The company declared a quarterly dividend of $0.455 per share, equivalent to an annualized $1.82 payout and a 2.3% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $98.85.

Caitong International Asset Management Co. Ltd acquired a new stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 43,173 shares of the semiconductor company's stock, valued at approximately $3,937,000. Microchip Technology comprises about 0.5% of Caitong International Asset Management Co. Ltd's portfolio, making the stock its 28th largest position.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Norges Bank acquired a new position in Microchip Technology during the fourth quarter valued at $664,564,000. Barclays PLC grew its position in Microchip Technology by 66.5% during the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock worth $891,881,000 after purchasing an additional 5,590,210 shares during the period. Rafferty Asset Management LLC raised its stake in shares of Microchip Technology by 41.0% during the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after buying an additional 1,803,945 shares during the last quarter. Ameriprise Financial Inc. raised its stake in shares of Microchip Technology by 255.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock valued at $150,271,000 after buying an additional 1,534,829 shares during the last quarter. Finally, Worldquant Millennium Advisors LLC purchased a new position in shares of Microchip Technology during the 2nd quarter valued at about $101,359,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Insider Activity

In related news, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer owned 130,508 shares of the company's stock, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,667 shares of company stock worth $1,580,580 in the last quarter. Corporate insiders own 1.79% of the company's stock.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $79.17 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91. The business has a 50-day moving average price of $85.72 and a 200 day moving average price of $81.47. The firm has a market cap of $42.99 billion, a PE ratio of 118.17, a P/E/G ratio of 0.62 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The company had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the firm posted $0.27 EPS. Microchip Technology's quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Sell-side analysts predict that Microchip Technology Incorporated will post 2.81 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology's dividend payout ratio is presently 271.64%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on MCHP. Barclays upped their target price on Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Monday, May 11th. UBS Group reiterated a "buy" rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Rosenblatt Securities reissued a "buy" rating and issued a $120.00 price target on shares of Microchip Technology in a report on Friday, August 7th. Truist Financial lowered their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research report on Friday, August 7th. Finally, Zacks Research raised shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $98.85.

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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