Davis R M Inc. Sells 88,692 Shares of Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Davis R M Inc. has reduced its holdings in Microchip Technology by 13.8%, now owning approximately 553,964 shares worth about $26.8 million after selling 88,692 shares in the first quarter.
• Microchip Technology reported a quarterly earnings per share (EPS) of $0.11, surpassing the consensus estimate of $0.10, despite experiencing a 26.8% decline in revenue year-over-year.
• The company recently declared a quarterly dividend of $0.455 per share, resulting in an annualized yield of 2.59% and reflecting a payout ratio of -18,200.00%.

Davis R M Inc. lessened its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 13.8% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 553,964 shares of the semiconductor company's stock after selling 88,692 shares during the period. Davis R M Inc. owned 0.10% of Microchip Technology worth $26,817,000 at the end of the most recent reporting period.

Several other institutional investors also recently added to or reduced their stakes in the company. Invesco Ltd. grew its holdings in Microchip Technology by 9.5% during the fourth quarter. Invesco Ltd. now owns 10,247,908 shares of the semiconductor company's stock worth $587,718,000 after acquiring an additional 890,819 shares during the period. FIL Ltd lifted its position in shares of Microchip Technology by 9.0% in the fourth quarter. FIL Ltd now owns 7,877,482 shares of the semiconductor company's stock valued at $451,774,000 after acquiring an additional 653,705 shares in the last quarter. Northern Trust Corp increased its stake in Microchip Technology by 4.7% in the fourth quarter. Northern Trust Corp now owns 6,958,502 shares of the semiconductor company's stock valued at $399,070,000 after purchasing an additional 311,796 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC increased its stake in Microchip Technology by 273.2% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock valued at $306,541,000 after purchasing an additional 3,912,895 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its stake in Microchip Technology by 9.7% during the fourth quarter. Envestnet Asset Management Inc. now owns 3,511,663 shares of the semiconductor company's stock worth $201,394,000 after acquiring an additional 309,193 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Cantor Fitzgerald began coverage on Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price on the stock. Evercore ISI raised their price target on Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a report on Thursday, June 12th. Susquehanna lifted their target price on Microchip Technology from $60.00 to $90.00 and gave the company a "positive" rating in a research note on Tuesday, July 22nd. Stifel Nicolaus lifted their target price on Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Finally, KeyCorp lifted their price target on Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Six equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average target price of $74.42.

Microchip Technology Stock Performance

MCHP traded up $0.23 on Monday, hitting $66.59. 8,549,517 shares of the stock traded hands, compared to its average volume of 10,501,967. Microchip Technology Incorporated has a 52 week low of $34.13 and a 52 week 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 firm has a market capitalization of $35.94 billion, a PE ratio of -6,659.00, a P/E/G ratio of 1.92 and a beta of 1.55. The business has a fifty day moving average price of $68.84 and a two-hundred day moving average price of $57.84.

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

Microchip Technology Dividend Announcement

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

Insiders Place Their Bets

In related news, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total value of $112,396.70. Following the sale, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. The trade was a 5.55% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.94% of the company's stock.

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.