Cozad Asset Management Inc. Lowers Holdings in Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Cozad Asset Management Inc. reduced its holdings in Microchip Technology by 32.0%, selling 19,672 shares and now owning 41,872 shares worth approximately $2,027,000.
• Several institutional investors, including Barrow Hanley Mewhinney & Strauss LLC and Franklin Resources Inc., significantly increased their stakes in Microchip Technology, lifting their positions by over 90% and 273%, respectively.
• Microchip Technology announced a quarterly dividend of $0.455 per share, representing an annual yield of 2.57%, despite the company facing a 26.8% decline in revenues compared to the previous year.

Cozad Asset Management Inc. trimmed its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 32.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 41,872 shares of the semiconductor company's stock after selling 19,672 shares during the period. Cozad Asset Management Inc.'s holdings in Microchip Technology were worth $2,027,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of MCHP. Franklin Resources Inc. raised its holdings in shares of Microchip Technology by 90.0% during the fourth quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company's stock valued at $364,792,000 after purchasing an additional 3,013,162 shares during the last quarter. Potomac Fund Management Inc. ADV purchased a new stake in shares of Microchip Technology in the fourth quarter valued at $738,000. First Citizens Bank & Trust Co. increased its stake in Microchip Technology by 468.2% in the 1st quarter. First Citizens Bank & Trust Co. now owns 73,737 shares of the semiconductor company's stock worth $3,570,000 after buying an additional 60,760 shares during the period. Allstate Corp purchased a new position in Microchip Technology in the 4th quarter worth about $922,000. Finally, DF Dent & Co. Inc. increased its position in Microchip Technology by 13.5% during the 4th quarter. DF Dent & Co. Inc. now owns 392,158 shares of the semiconductor company's stock valued at $22,490,000 after purchasing an additional 46,608 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Trading Down 1.8%

NASDAQ MCHP traded down $1.23 during trading hours on Friday, reaching $66.36. The company had a trading volume of 11,541,664 shares, compared to its average volume of 7,927,445. The stock has a 50-day moving average of $68.64 and a 200 day moving average of $57.76. Microchip Technology Incorporated has a 1-year low of $34.13 and a 1-year high of $82.87. The company has a current ratio of 2.59, a quick ratio of 1.47 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $35.81 billion, a P/E ratio of -6,636.00, a price-to-earnings-growth ratio of 1.95 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.01. The business had revenue of $970.50 million for the quarter, compared to analysts' expectations of $962.86 million. Microchip Technology had a negative net margin of 0.01% and a positive return on equity of 8.55%. The business's quarterly revenue was down 26.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.57 earnings per share. As a group, research analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Thursday, May 22nd. Microchip Technology's dividend payout ratio is currently -18,200.00%.

Wall Street Analyst Weigh In

A number of analysts recently commented on MCHP shares. Rosenblatt Securities lifted their target price on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. Evercore ISI lifted their price objective on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research note on Thursday, June 12th. Raymond James Financial lifted their price objective on shares of Microchip Technology from $60.00 to $65.00 and gave the company a "strong-buy" rating in a research note on Friday, May 9th. Truist Financial boosted their target price on shares of Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research note on Wednesday, June 18th. Finally, The Goldman Sachs Group assumed coverage on shares of Microchip Technology in a research note on Thursday, July 10th. They issued a "buy" rating and a $88.00 target price for the company. Six analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Microchip Technology has a consensus rating of "Moderate Buy" and an average target price of $75.70.

Insider Activity

In other news, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the sale, the chief financial officer owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This represents a 5.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director directly owned 3,468 shares in the company, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by corporate insiders.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.