CIBC Asset Management Inc Increases Position in Microchip Technology Incorporated $MCHP

Key Points

• CIBC Asset Management boosted its Microchip Technology stake by 35.5% in the fourth quarter, bringing its holdings to 232,139 shares worth about $14.8 million.
• Several other institutions also increased or initiated positions, and hedge funds and other institutions now own 91.51% of the stock.
• Microchip reported better-than-expected quarterly results with EPS of $0.57 and revenue of $1.31 billion, while analysts remain generally bullish with a consensus rating of Moderate Buy and a target price of $97.52.

CIBC Asset Management Inc raised its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.5% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 232,139 shares of the semiconductor company's stock after purchasing an additional 60,861 shares during the period. CIBC Asset Management Inc's holdings in Microchip Technology were worth $14,792,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. GoalVest Advisory LLC boosted its position in shares of Microchip Technology by 174.0% in the 4th quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 348 shares in the last quarter. Board of the Pension Protection Fund bought a new position in Microchip Technology during the 4th quarter valued at approximately $38,000. Kohmann Bosshard Financial Services LLC purchased a new position in Microchip Technology during the fourth quarter valued at $38,000. TOWER TRUST & INVESTMENT Co raised its stake in Microchip Technology by 1,555.0% during the fourth quarter. TOWER TRUST & INVESTMENT Co now owns 662 shares of the semiconductor company's stock valued at $42,000 after buying an additional 622 shares during the last quarter. Finally, State of Wyoming boosted its holdings in Microchip Technology by 78.1% in the second quarter. State of Wyoming now owns 618 shares of the semiconductor company's stock worth $43,000 after acquiring an additional 271 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Microchip Technology

In other news, CEO Steve Sanghi sold 416,581 shares of the company's stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the sale, the chief executive officer owned 9,495,805 shares of the company's stock, valued at $840,663,616.65. This represents a 4.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 548,302 shares of company stock worth $49,186,035 in the last ninety days. Insiders own 1.94% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MCHP. Mizuho increased their target price on Microchip Technology from $83.00 to $90.00 and gave the stock an "outperform" rating in a research note on Friday, February 6th. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Rosenblatt Securities increased their price objective on shares of Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Stifel Nicolaus set a $90.00 price objective on shares of Microchip Technology in a research note on Friday, February 6th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Microchip Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $97.52.

Microchip Technology Trading Down 0.3%

NASDAQ:MCHP opened at $96.30 on Friday. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a market cap of $52.20 billion, a PE ratio of 458.59, a price-to-earnings-growth ratio of 1.02 and a beta of 1.73. The company has a 50 day simple moving average of $84.54 and a two-hundred day simple moving average of $74.07.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. The firm 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 company's revenue was up 35.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Research analysts forecast that Microchip Technology Incorporated will post 2.58 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.9%. Microchip Technology's dividend payout ratio 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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