Engineers Gate Manager LP Purchases 26,739 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Engineers Gate Manager LP increased its Microchip Technology stake by 480.1% in the second quarter, purchasing 26,739 shares and bringing its holdings to 32,308 shares valued at approximately $2.95 million.
• Institutional investors own 91.51% of Microchip Technology, while CFO James Bjornholt sold 4,112 shares for about $309,716 under a pre-arranged Rule 10b5-1 trading plan.
• Microchip exceeded quarterly earnings and revenue expectations, reporting $0.76 EPS and $1.48 billion in revenue, up 38% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $98.67, compared with a recent share price of $74.20.

Engineers Gate Manager LP lifted its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 480.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 32,308 shares of the semiconductor company's stock after acquiring an additional 26,739 shares during the quarter. Engineers Gate Manager LP's holdings in Microchip Technology were worth $2,946,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in MCHP. California State Teachers Retirement System lifted its holdings in shares of Microchip Technology by 9,307.4% in the 2nd quarter. California State Teachers Retirement System now owns 74,723,990 shares of the semiconductor company's stock worth $6,814,828,000 after acquiring an additional 73,929,678 shares during the last quarter. Norges Bank acquired a new stake in Microchip Technology in the 4th quarter valued at approximately $664,564,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Microchip Technology in the second quarter valued at approximately $537,423,000. Barclays PLC raised its position in Microchip Technology by 66.5% in the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after purchasing an additional 5,590,210 shares during the period. Finally, Legal & General Group Plc acquired a new position in Microchip Technology during the second quarter worth $312,597,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $74.20 on Monday. The firm has a market cap of $40.29 billion, a price-to-earnings ratio of 110.75, a price-to-earnings-growth ratio of 0.52 and a beta of 1.75. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The firm's fifty day moving average price is $78.36 and its 200 day moving average price is $81.05. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11.

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

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Monday, August 24th. Microchip Technology's payout ratio is presently 271.64%.

Wall Street Analyst Weigh In

MCHP has been the topic of several research analyst reports. Wells Fargo & Company cut their price objective on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a report on Monday, July 20th. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Truist Financial dropped their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Friday, August 7th. Zacks Research lowered shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Citigroup cut their price objective on Microchip Technology from $113.00 to $95.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Microchip Technology has a consensus rating of "Moderate Buy" and an average target price of $98.67.

Microchip Technology Profile

Microchip Technology Incorporated NASDAQ: MCHP develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.

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