Cibc World Market Inc. Buys New Position in Microchip Technology Incorporated $MCHP

Key Points

• CIBC World Market initiated a position in Microchip Technology by purchasing 117,670 shares valued at approximately $10.7 million. Institutional investors collectively own 91.51% of the company.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $98.67, despite some recent downgrades and target-price cuts.
• Microchip exceeded quarterly earnings and revenue expectations, reporting $0.76 EPS and $1.48 billion in revenue, while revenue grew 38% year over year. The company also declared a quarterly dividend of $0.455 per share, representing a 2.5% annualized yield.

Cibc World Market Inc. bought a new stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 117,670 shares of the semiconductor company's stock, valued at approximately $10,732,000.

Several other hedge funds have also recently added to or reduced their stakes in MCHP. Vanguard Group Inc. lifted its position in shares of Microchip Technology by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock worth $4,683,824,000 after purchasing an additional 1,430,781 shares during the period. State Street Corp raised its stake in Microchip Technology by 2.8% during the fourth quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock worth $1,839,153,000 after buying an additional 783,157 shares during the last quarter. Boston Partners raised its stake in Microchip Technology by 9.5% during the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock worth $1,044,024,000 after buying an additional 1,406,885 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Microchip Technology by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock valued at $977,638,000 after buying an additional 213,188 shares during the period. Finally, Invesco Ltd. lifted its holdings in Microchip Technology by 4.8% in the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock valued at $955,298,000 after buying an additional 684,561 shares during the period. Institutional investors own 91.51% of the company's stock.

Insider Buying and Selling at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO James Eric Bjornholt sold 837 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $80.26, for a total value of $67,177.62. Following the transaction, the chief financial officer directly owned 30,960 shares in the company, valued at $2,484,849.60. The trade was a 2.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 8,837 shares of company stock valued at $847,338. Company insiders own 1.79% of the company's stock.

Wall Street Analysts Forecast Growth

MCHP has been the subject of a number of recent analyst reports. Rosenblatt Securities reiterated a "buy" rating and set a $120.00 price target on shares of Microchip Technology in a report on Friday, August 7th. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th. 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 report on Monday, July 13th. Susquehanna lifted their target price on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a report on Friday, May 8th. Finally, Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus price target of $98.67.

Microchip Technology Trading Down 2.5%

MCHP opened at $74.21 on Tuesday. The company has a fifty day moving average price of $83.77 and a two-hundred day moving average price of $81.49. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a market cap of $40.30 billion, a P/E ratio of 110.76, a price-to-earnings-growth ratio of 0.53 and a beta of 1.76. 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 (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business's revenue was up 38.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Analysts predict that Microchip Technology Incorporated will post 3.16 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a $0.455 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.5%. Microchip Technology's dividend payout ratio is presently 271.64%.

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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