Cibc World Market Inc. Sells 40,497 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Cibc World Market Inc. reduced its Microchip Technology stake by 28.7% in the fourth quarter, selling 40,497 shares and leaving it with 100,405 shares valued at about $6.4 million.
• Microchip Technology posted stronger-than-expected results for the latest quarter, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% from a year earlier.
• Analyst sentiment remains constructive, with a consensus rating of “Moderate Buy” and an average price target of $97.52; several firms recently raised targets or reiterated bullish ratings.

Cibc World Market Inc. cut its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 28.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 100,405 shares of the semiconductor company's stock after selling 40,497 shares during the period. Cibc World Market Inc.'s holdings in Microchip Technology were worth $6,398,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of MCHP. GoalVest Advisory LLC lifted its stake in Microchip Technology by 174.0% in the fourth quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 348 shares during the last quarter. Board of the Pension Protection Fund purchased a new position in Microchip Technology in the fourth quarter valued at approximately $38,000. Kohmann Bosshard Financial Services LLC purchased a new position in Microchip Technology in the fourth quarter valued at approximately $38,000. State of Wyoming lifted its stake in Microchip Technology by 78.1% in the second quarter. State of Wyoming now owns 618 shares of the semiconductor company's stock valued at $43,000 after purchasing an additional 271 shares during the last quarter. Finally, TOWER TRUST & INVESTMENT Co lifted its stake in Microchip Technology by 1,555.0% in the fourth quarter. TOWER TRUST & INVESTMENT Co now owns 662 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 622 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Susquehanna increased their target price on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. Argus upgraded Microchip Technology to a "strong-buy" rating in a research report on Monday, February 9th. UBS Group restated a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Cantor Fitzgerald restated an "overweight" rating and set a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. 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 research report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $97.52.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $88.34 on Monday. The stock's 50-day moving average price is $85.00 and its 200-day moving average price is $74.33. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91. The stock has a market capitalization of $47.89 billion, a P/E ratio of 420.69, a price-to-earnings-growth ratio of 0.93 and a beta of 1.73. 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 (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter was up 35.1% compared to the same quarter last year. During the same period last year, the firm earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts anticipate that Microchip Technology Incorporated will post 2.58 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were issued a $0.455 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 2.1%. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Insider Activity at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Sanghi sold 76,469 shares of Microchip Technology stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the transaction, the chief executive officer owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 548,302 shares of company stock valued at $49,186,035. 1.94% of the stock is currently owned by corporate insiders.

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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