Ethic Inc. Trims Stake in Microchip Technology Incorporated $MCHP

Key Points

• Ethic Inc. reduced its stake in Microchip Technology by 12.5%, selling 7,994 shares, now holding a total of 55,756 shares worth approximately $2.7 million.
• Notable institutional investors like Vanguard and Goldman Sachs increased their stakes in Microchip Technology during the first quarter, reflecting a strong interest in the company among major investors.
• Microchip Technology recently reported quarterly earnings exceeding analysts' expectations, with a revenue of $1.08 billion, although it recorded a year-over-year revenue decline of 13.3%.

Ethic Inc. trimmed its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 12.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 55,756 shares of the semiconductor company's stock after selling 7,994 shares during the period. Ethic Inc.'s holdings in Microchip Technology were worth $2,704,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently bought and sold shares of the company. Garde Capital Inc. purchased a new stake in Microchip Technology during the 1st quarter worth about $30,000. Orion Capital Management LLC purchased a new stake in Microchip Technology during the 4th quarter worth about $41,000. Byrne Asset Management LLC purchased a new stake in Microchip Technology during the 1st quarter worth about $41,000. GW&K Investment Management LLC lifted its holdings in Microchip Technology by 161.0% during the 1st quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock worth $45,000 after buying an additional 578 shares during the last quarter. Finally, American National Bank & Trust purchased a new stake in Microchip Technology during the 1st quarter worth about $48,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have issued reports on MCHP shares. Truist Financial lifted their price target on Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a report on Wednesday, June 18th. Needham & Company LLC boosted their target price on Microchip Technology from $66.00 to $77.00 and gave the company a "buy" rating in a report on Friday, August 8th. Mizuho boosted their target price on Microchip Technology from $78.00 to $85.00 and gave the company an "outperform" rating in a report on Tuesday, July 8th. Citigroup boosted their target price on Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a report on Monday, July 7th. Finally, Bank of America raised Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 price objective for the company in a research note on Friday, May 9th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $76.58.

Microchip Technology Stock Performance

NASDAQ MCHP traded down $0.66 on Thursday, hitting $66.10. 5,931,054 shares of the company's stock were exchanged, compared to its average volume of 10,411,636. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.31 and a quick ratio of 1.33. The firm's 50-day moving average price is $69.54 and its two-hundred day moving average price is $58.56. Microchip Technology Incorporated has a fifty-two week low of $34.13 and a fifty-two week high of $82.65. The firm has a market cap of $35.67 billion, a price-to-earnings ratio of -194.41, a P/E/G ratio of 1.87 and a beta of 1.55.

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

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be issued a $0.455 dividend. The ex-dividend date is Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. Microchip Technology's dividend payout ratio is currently -535.29%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 2,015 shares of the company's stock in a transaction that occurred 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 owned 34,313 shares in the company, valued at $1,913,979.14. This represents a 5.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.94% of the stock is currently owned by corporate insiders.

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.