Freestone Grove Partners LP Takes Position in Microchip Technology Incorporated $MCHP

Key Points

• Freestone Grove Partners acquired 198,198 Microchip Technology shares worth approximately $18.1 million, while institutional investors and hedge funds collectively own 91.51% of MCHP.
• Microchip reported quarterly earnings of $0.76 per share, beating estimates of $0.70, while revenue rose 38% year over year to $1.48 billion. The company guided to $0.91–$0.95 in EPS for fiscal Q2 2027.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.67, compared with the stock’s reported price of $75.49; the company also announced a quarterly dividend of $0.455 per share.

Freestone Grove Partners LP acquired a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 198,198 shares of the semiconductor company's stock, valued at approximately $18,076,000.

A number of other hedge funds also recently made changes to their positions in MCHP. Miller Capital Partners Inc. bought a new position in shares of Microchip Technology in the 4th quarter valued at $29,000. EFG International AG acquired a new position in Microchip Technology in the 4th quarter worth about $29,000. Continuum Advisory LLC acquired a new position in Microchip Technology in the 2nd quarter worth about $30,000. Johnson Financial Group Inc. bought a new position in Microchip Technology in the second quarter valued at about $31,000. Finally, Caitong International Asset Management Co. Ltd boosted its stake in shares of Microchip Technology by 4,663.6% during the fourth 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 in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $75.49 on Friday. The company has a market capitalization of $40.99 billion, a PE ratio of 112.67, a P/E/G ratio of 0.52 and a beta of 1.76. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91. The firm has a fifty day simple moving average of $82.44 and a 200 day simple moving average of $81.43.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the firm posted $0.27 earnings per share. The business's quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, sell-side analysts forecast that Microchip Technology Incorporated will post 3.16 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be paid a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.4%. Microchip Technology's dividend payout ratio (DPR) is currently 271.64%.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on MCHP. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $125.00 price objective on shares of Microchip Technology in a research note on Monday, August 17th. Citigroup cut their target price on shares of Microchip Technology from $113.00 to $95.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Needham & Company LLC upped their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Finally, Wells Fargo & Company cut their price target on shares of Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a report on Monday, July 20th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $98.67.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,112 shares of Microchip Technology stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,949 shares of company stock valued at $864,493 in the last ninety 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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