California State Teachers Retirement System Acquires 73,929,678 Shares of Microchip Technology Incorporated $MCHP

Key Points

• California State Teachers Retirement System increased its Microchip Technology stake by 9,307.4%, purchasing 73.9 million additional shares and ending the quarter with a 13.76% ownership interest valued at approximately $6.8 billion.
• Microchip reported quarterly earnings of $0.76 per share on $1.48 billion in revenue, exceeding analyst estimates; revenue rose 38% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $98.67.
• MCHP shares opened at $73.01, below their 50-day and 200-day moving averages, while the company’s $1.82 annual dividend yields about 2.5%.

California State Teachers Retirement System lifted its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 9,307.4% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 74,723,990 shares of the semiconductor company's stock after purchasing an additional 73,929,678 shares during the period. California State Teachers Retirement System owned about 13.76% of Microchip Technology worth $6,814,828,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Wedmont Private Capital purchased a new position in Microchip Technology during the second quarter valued at approximately $262,000. Widmann Financial Services Inc. lifted its holdings in Microchip Technology by 6.1% during the second quarter. Widmann Financial Services Inc. now owns 21,208 shares of the semiconductor company's stock worth $1,934,000 after buying an additional 1,214 shares during the period. HB Wealth Management LLC lifted its holdings in Microchip Technology by 1.7% during the second quarter. HB Wealth Management LLC now owns 29,709 shares of the semiconductor company's stock worth $2,710,000 after buying an additional 508 shares during the period. Saudi Central Bank boosted its position in Microchip Technology by 89.9% during the 2nd quarter. Saudi Central Bank now owns 37,879 shares of the semiconductor company's stock valued at $3,455,000 after acquiring an additional 17,930 shares in the last quarter. Finally, Azimuth Capital Investment Management LLC bought a new stake in Microchip Technology during the 2nd quarter valued at $225,000. 91.51% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. UBS Group reissued a "buy" rating and issued a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Wells Fargo & Company dropped their price objective on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research report on Monday, July 20th. TD Cowen cut their target price on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Citigroup reduced their target price on shares of Microchip Technology from $113.00 to $95.00 and set a "buy" rating for the company in a report on Friday, August 7th. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of Microchip Technology in a research report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus target price of $98.67.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $73.01 on Thursday. The business's fifty day simple moving average is $78.83 and its 200-day simple moving average is $81.11. The company has a market cap of $39.65 billion, a PE ratio of 108.97, a PEG ratio of 0.51 and a beta of 1.75. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business posted $0.27 EPS. The business's revenue for the quarter 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. Analysts expect that Microchip Technology Incorporated will post 3.16 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology's dividend payout ratio (DPR) is currently 271.64%.

Insiders Place Their Bets

In other news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company's stock.

About Microchip Technology

Microchip Technology Incorporated NASDAQ: MCHP develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.

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