E Fund Management Co. Ltd. Invests $3.07 Million in Microchip Technology Incorporated $MCHP

Key Points

• E Fund Management purchased 33,697 shares of Microchip Technology worth approximately $3.07 million, while institutional investors collectively own 91.51% of the company.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.85, though several firms recently lowered their targets; Microchip’s shares opened at $77.08.
• Microchip exceeded quarterly expectations with $0.76 in EPS and $1.48 billion in revenue, up 38% year over year, and declared a quarterly dividend of $0.455 per share.

E Fund Management Co. Ltd. purchased a new stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 33,697 shares of the semiconductor company's stock, valued at approximately $3,073,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. MSH Capital Advisors LLC acquired a new position in shares of Microchip Technology in the second quarter valued at about $328,000. Johnson Financial Group Inc. purchased a new position in shares of Microchip Technology in the second quarter worth about $31,000. one8zero8 LLC acquired a new stake in shares of Microchip Technology during the second quarter worth about $383,000. Kentucky Farm Bureau Mutual Insurance Co acquired a new stake in shares of Microchip Technology during the second quarter worth about $3,283,000. Finally, Addison Advisors LLC purchased a new stake in Microchip Technology in the second quarter valued at approximately $48,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Truist Financial cut their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Friday, August 7th. Zacks Research downgraded shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday. Wells Fargo & Company lowered their price target on shares of Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a report on Monday, July 20th. Rosenblatt Securities reaffirmed a "buy" rating and set a $120.00 price target on shares of Microchip Technology in a research report on Friday, August 7th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $125.00 price objective on shares of Microchip Technology in a research note on Monday. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $98.85.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 837 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $80.26, for a total transaction of $67,177.62. Following the transaction, the chief financial officer owned 30,960 shares of the company's stock, valued at approximately $2,484,849.60. The trade was a 2.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Richard J. Simoncic sold 5,000 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were 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 directly owned 130,508 shares of the company's stock, valued at $12,727,140.16. This represents a 3.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 17,504 shares of company stock worth $1,647,758. Insiders own 1.79% of the company's stock.

Microchip Technology Price Performance

NASDAQ:MCHP opened at $77.08 on Thursday. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The stock has a market capitalization of $41.86 billion, a PE ratio of 115.05, a price-to-earnings-growth ratio of 0.54 and a beta of 1.76. The stock's 50-day moving average price is $85.02 and its 200-day moving average price is $81.53.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm posted $0.27 EPS. The business's revenue was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities analysts expect that Microchip Technology Incorporated will post 3.16 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology's dividend payout ratio is currently 271.64%.

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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