Fifth Third Bancorp Lowers Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Fifth Third Bancorp reduced its stake in Microchip Technology by 19% in Q2, now holding 433,493 shares valued at approximately $30.5 million.
• Director Matthew W. Chapman and CFO James Eric Bjornholt both sold shares on August 25th, significantly reducing their ownership in the company.
• Despite a revenue decline of 13.3% year-over-year, Microchip Technology reported positive earnings of $0.27 per share for the last quarter, exceeding estimates.

Fifth Third Bancorp lessened its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 19.0% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 433,493 shares of the semiconductor company's stock after selling 101,358 shares during the quarter. Fifth Third Bancorp owned approximately 0.08% of Microchip Technology worth $30,505,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in MCHP. Garde Capital Inc. acquired a new stake in Microchip Technology in the 1st quarter worth about $30,000. MCF Advisors LLC boosted its position in shares of Microchip Technology by 211.2% in the second quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 321 shares during the last quarter. Carderock Capital Management Inc. purchased a new stake in Microchip Technology in the second quarter valued at approximately $39,000. WPG Advisers LLC purchased a new stake in Microchip Technology in the first quarter valued at approximately $40,000. Finally, Painted Porch Advisors LLC acquired a new position in Microchip Technology during the second quarter worth approximately $40,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Insider Activity

In other news, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the sale, the director directly owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the transaction, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by company insiders.

Microchip Technology Price Performance

MCHP stock opened at $65.85 on Thursday. The firm has a market cap of $35.54 billion, a P/E ratio of -193.68, a price-to-earnings-growth ratio of 1.85 and a beta of 1.56. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $81.64. The stock has a 50-day simple moving average of $66.69 and a 200-day simple moving average of $60.01.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. Microchip Technology's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter last year, the company earned $0.53 earnings per share. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's dividend payout ratio is presently -535.29%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on MCHP. Needham & Company LLC lifted their price target on shares of Microchip Technology from $66.00 to $77.00 and gave the company a "buy" rating in a report on Friday, August 8th. TD Cowen lowered their price target on Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Wells Fargo & Company began coverage on Microchip Technology in a research note on Monday, September 15th. They set an "equal weight" rating and a $60.00 price target for the company. Cantor Fitzgerald started coverage on Microchip Technology in a research note on Wednesday, June 18th. They issued a "neutral" rating and a $70.00 price objective on the stock. Finally, Raymond James Financial increased their target price on shares of Microchip Technology from $65.00 to $75.00 and gave the stock a "strong-buy" rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and a consensus price target of $75.75.

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.

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