Fjarde AP Fonden Fourth Swedish National Pension Fund Acquires 47,700 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Fjarde AP Fonden increased its Microchip Technology stake by 61.7% in the first quarter, buying 47,700 additional shares and bringing its total to 125,053 shares worth about $8.08 million.
• Microchip Technology reported stronger-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% year over year.
• Analysts remain constructive on MCHP, with several firms raising price targets and the consensus rating listed as “Moderate Buy” with a target price of $98.18, even as some insiders sold shares recently.

Fjarde AP Fonden Fourth Swedish National Pension Fund grew its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 61.7% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 125,053 shares of the semiconductor company's stock after acquiring an additional 47,700 shares during the quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund's holdings in Microchip Technology were worth $8,080,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of the business. Elevation Point Wealth Partners LLC bought a new position in shares of Microchip Technology during the 1st quarter valued at about $1,471,000. Keybank National Association OH grew its position in shares of Microchip Technology by 161.9% in the 1st quarter. Keybank National Association OH now owns 13,460 shares of the semiconductor company's stock valued at $870,000 after purchasing an additional 8,321 shares during the period. Root Financial Partners LLC increased its stake in Microchip Technology by 80.7% during the 1st quarter. Root Financial Partners LLC now owns 656 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 293 shares in the last quarter. Essex Financial Services Inc. bought a new stake in Microchip Technology during the 1st quarter worth approximately $254,000. Finally, Deltec Asset Management LLC acquired a new stake in Microchip Technology during the 1st quarter worth approximately $678,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Insider Buying and Selling

In other Microchip Technology news, Director Matthew W. Chapman sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director directly owned 17,665 shares in the company, valued at $1,722,690.80. This trade represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Steve Sanghi sold 76,469 shares of the business's stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. This trade represents a 0.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 553,302 shares of company stock worth $49,673,635 in the last three months. Insiders own 1.94% of the company's stock.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $84.64 on Monday. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company's fifty day simple moving average is $93.79 and its 200-day simple moving average is $79.15. The firm has a market cap of $45.88 billion, a PE ratio of 403.07, a P/E/G ratio of 0.87 and a beta of 1.74. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm earned $0.11 earnings per share. The firm's revenue for the quarter 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. Equities research analysts expect that Microchip Technology Incorporated will post 2.66 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.455 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.2%. Microchip Technology's dividend payout ratio (DPR) is presently 866.67%.

Analysts Set New Price Targets

A number of brokerages have weighed in on MCHP. Wells Fargo & Company lifted their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Zacks Research upgraded shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Citigroup boosted their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Finally, Susquehanna boosted their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $98.18.

Microchip Technology Profile

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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