Entropy Technologies LP Purchases 83,346 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Entropy Technologies LP boosted its Microchip Technology stake by 593.7% in the fourth quarter, buying 83,346 additional shares and bringing its total holding to 97,385 shares worth about $6.2 million.
• Other institutional investors also increased their positions, and institutions now own 91.51% of Microchip Technology’s stock, showing continued strong institutional interest.
• Analysts remain broadly positive: Microchip has a Moderate Buy consensus rating with a $98.18 price target, while the company recently beat quarterly earnings and revenue estimates and reported 35.1% year-over-year revenue growth.

Entropy Technologies LP increased its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 593.7% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 97,385 shares of the semiconductor company's stock after purchasing an additional 83,346 shares during the quarter. Entropy Technologies LP's holdings in Microchip Technology were worth $6,205,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of MCHP. Caitong International Asset Management Co. Ltd increased its position in shares of Microchip Technology by 4,663.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 513 shares during the last quarter. GoalVest Advisory LLC increased its position in shares of Microchip Technology by 174.0% during the 4th quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 348 shares during the last quarter. Board of the Pension Protection Fund bought a new position in shares of Microchip Technology during the 4th quarter valued at approximately $38,000. Kohmann Bosshard Financial Services LLC bought a new position in shares of Microchip Technology during the 4th quarter valued at approximately $38,000. Finally, Rossby Financial LCC increased its position in shares of Microchip Technology by 41.1% during the 4th quarter. Rossby Financial LCC now owns 628 shares of the semiconductor company's stock valued at $40,000 after purchasing an additional 183 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Insiders Place Their Bets

In related news, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the transaction, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. The trade was a 3.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steve Sanghi sold 416,581 shares of the business's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total value of $36,879,915.93. Following the transaction, the chief executive officer owned 9,495,805 shares of the company's stock, valued at approximately $840,663,616.65. The trade was a 4.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 553,302 shares of company stock worth $49,673,635 in the last 90 days. 1.94% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on MCHP. Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Barclays boosted their target price on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. Wells Fargo & Company boosted their target price on Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and set a $125.00 target price on shares of Microchip Technology in a research report on Wednesday, May 13th. Finally, UBS Group reissued a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Four analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $98.18.

Microchip Technology Price Performance

MCHP opened at $95.24 on Friday. The business has a fifty day moving average of $87.85 and a 200 day moving average of $75.61. 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 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The stock has a market cap of $51.63 billion, a P/E ratio of 453.55, a PEG ratio of 1.00 and a beta of 1.73.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the business earned $0.11 EPS. Microchip Technology's revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, sell-side analysts anticipate that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were issued a dividend of $0.455 per share. The ex-dividend date was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.9%. Microchip Technology's payout ratio is presently 866.67%.

About Microchip Technology

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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