Generation Investment Management LLP Has $18.02 Million Position in Microchip Technology Incorporated $MCHP

Key Points

• Generation Investment Management LLP reduced its stake in Microchip Technology by 33.4%, owning about 0.07% of the company, valued at $18.02 million after selling 186,921 shares.
• Multiple analysts have recently raised their price targets for Microchip Technology, with UBS Group and Citigroup setting targets as high as $90.00 and giving the stock a "buy" rating.
• Microchip Technology announced a quarterly dividend of $0.455 per share, representing an annualized yield of 2.8%, amidst a solid market capitalization of $35.08 billion.

Generation Investment Management LLP lowered its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 33.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 372,154 shares of the semiconductor company's stock after selling 186,921 shares during the period. Generation Investment Management LLP owned about 0.07% of Microchip Technology worth $18,016,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently bought and sold shares of MCHP. Orbis Allan Gray Ltd purchased a new stake in shares of Microchip Technology during the 1st quarter worth $369,612,000. Invesco Ltd. grew its position in shares of Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after acquiring an additional 6,459,123 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Microchip Technology by 138.9% during the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after purchasing an additional 5,136,154 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its position in Microchip Technology by 273.2% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock worth $306,541,000 after acquiring an additional 3,912,895 shares in the last quarter. Finally, Boston Partners grew its stake in Microchip Technology by 35.3% during the 1st quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock valued at $517,082,000 after acquiring an additional 2,795,650 shares in the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Matthew W. Chapman sold 10,000 shares of the firm's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total value of $682,500.00. Following the transaction, the director owned 30,665 shares in the company, valued at $2,092,886.25. This trade represents a 24.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 7,356 shares of the firm's stock in a transaction dated Monday, August 25th. The shares were 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 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

NASDAQ:MCHP traded up $1.49 during trading hours on Friday, reaching $65.92. The company had a trading volume of 7,765,182 shares, compared to its average volume of 8,738,270. The stock has a 50-day moving average of $68.82 and a two-hundred day moving average of $59.56. Microchip Technology Incorporated has a one year low of $34.13 and a one year high of $81.64. The firm has a market capitalization of $35.58 billion, a PE ratio of -193.88, a PEG ratio of 1.85 and a beta of 1.56. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. The company 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 business's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.53 earnings per share. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 22nd were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Friday, August 22nd. Microchip Technology's dividend payout ratio is presently -535.29%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on MCHP shares. The Goldman Sachs Group started coverage on Microchip Technology in a report on Thursday, July 10th. They issued a "buy" rating and a $88.00 target price for the company. Mizuho boosted their target price on Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a report on Tuesday, July 8th. Rosenblatt Securities upped their price target on Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Cantor Fitzgerald assumed coverage on Microchip Technology in a report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price target for the company. Finally, Raymond James Financial upped their price target on Microchip Technology from $65.00 to $75.00 and gave the stock a "strong-buy" rating in a report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $76.58.

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.