First Trust Advisors LP Sells 283,702 Shares of Microchip Technology Incorporated $MCHP

Key Points

• First Trust Advisors LP cut its stake in Microchip Technology by 11.1% in the first quarter, selling 283,702 shares and leaving it with 2,280,793 shares valued at about $147.4 million.
• Microchip Technology reported stronger-than-expected quarterly results, posting EPS of $0.57 versus the $0.50 estimate and revenue of $1.31 billion, up 35.1% year over year.
• Wall Street remains moderately bullish on the stock, with analysts assigning a consensus “Moderate Buy” rating and an average target price of $99.76, even as the shares traded down 4.3% to $81.35.

First Trust Advisors LP trimmed its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 11.1% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,280,793 shares of the semiconductor company's stock after selling 283,702 shares during the period. First Trust Advisors LP owned about 0.42% of Microchip Technology worth $147,362,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. EFG International AG bought a new position in Microchip Technology during the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. purchased a new position in Microchip Technology in the 4th quarter worth approximately $29,000. Garton & Associates Financial Advisors LLC bought a new stake in Microchip Technology in the fourth quarter valued at approximately $33,000. Reflection Asset Management bought a new position in shares of Microchip Technology in the fourth quarter worth approximately $33,000. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after buying an additional 513 shares during the period. 91.51% of the stock is owned by institutional investors.

Microchip Technology Trading Down 4.3%

NASDAQ:MCHP opened at $81.35 on Friday. The company has a 50-day moving average price of $90.94 and a 200-day moving average price of $81.10. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The stock has a market cap of $44.17 billion, a price-to-earnings ratio of 387.40, a P/E/G ratio of 0.85 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the company earned $0.11 earnings per share. Microchip Technology's quarterly revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts predict that Microchip Technology Incorporated will post 2.7 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders 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 dividend yield of 2.2%. Microchip Technology's dividend payout ratio is 866.67%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on MCHP shares. Rosenblatt Securities increased their price target on shares of Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Barclays upped their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Citigroup boosted their price target on Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. Finally, UBS Group reaffirmed a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Four research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $99.76.

Insider Transactions at Microchip Technology

In related news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total value of $7,155,969.02. Following the sale, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares of the company's stock, valued at approximately $2,596,428.51. This trade represents a 11.37% 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 sold a total of 136,721 shares of company stock worth $12,793,719 over the last 90 days. 1.79% of the stock is currently owned by insiders.

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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