Dimensional Fund Advisors LP Reduces Stock Position in Microchip Technology Incorporated $MCHP

Key Points

• Dimensional Fund Advisors LP has reduced its stake in Microchip Technology by 16.5%, selling over 500,000 shares in the first quarter, leaving them with approximately 2.57 million shares valued at $124.55 million.
• Multiple hedge funds, including Invesco and Goldman Sachs, have increased their holdings in Microchip Technology, indicating strong institutional interest in the stock.
• Microchip Technology reported an earnings per share of $0.27, exceeding expectations, despite a 13.3% year-over-year revenue decline.

Dimensional Fund Advisors LP cut its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 16.5% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 2,573,129 shares of the semiconductor company's stock after selling 508,152 shares during the period. Dimensional Fund Advisors LP owned approximately 0.48% of Microchip Technology worth $124,550,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Garde Capital Inc. acquired a new position in shares of Microchip Technology in the 1st quarter valued at approximately $30,000. Orion Capital Management LLC acquired a new stake in Microchip Technology in the fourth quarter valued at approximately $41,000. Byrne Asset Management LLC acquired a new stake in Microchip Technology in the first quarter valued at approximately $41,000. GW&K Investment Management LLC boosted its position in Microchip Technology by 161.0% in the first quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after buying an additional 578 shares in the last quarter. Finally, American National Bank & Trust acquired a new position in shares of Microchip Technology during the first quarter worth $48,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on MCHP shares. Morgan Stanley lifted their price target on shares of Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a report on Friday, May 9th. KeyCorp lifted their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. UBS Group boosted their target price on shares of Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Rosenblatt Securities boosted their price target on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Finally, Truist Financial boosted their price target on shares of Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a report on Wednesday, June 18th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $76.58.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP traded up $3.04 during trading on Friday, reaching $69.14. The company had a trading volume of 12,427,539 shares, compared to its average volume of 9,435,212. The company has a fifty day moving average of $69.57 and a two-hundred day moving average of $58.84. The stock has a market capitalization of $37.31 billion, a P/E ratio of -203.35, a price-to-earnings-growth ratio of 2.00 and a beta of 1.55. Microchip Technology Incorporated has a 12 month low of $34.13 and a 12 month high of $82.65. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The business's revenue for the quarter was down 13.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Equities research analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be paid a $0.455 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.6%. Microchip Technology's dividend payout ratio is -535.29%.

Microchip Technology Company Profile

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.