33,030 Shares in Microchip Technology Incorporated (NASDAQ:MCHP) Acquired by Ground Swell Capital LLC

Key Points

• Ground Swell Capital LLC made a significant investment in Microchip Technology, purchasing 33,030 shares worth approximately $1.6 million, which constitutes 3.4% of their investment portfolio.
• Microchip Technology announced a quarterly dividend of $0.455, with shareholders set to receive it on September 5th, indicating a yield of 2.8% despite a negative dividend payout ratio of -535.29%.
• The company's stock price is projected to grow, with multiple analysts raising their price targets, including Mizuho, which increased theirs from $78 to $85.

Ground Swell Capital LLC purchased a new position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 33,030 shares of the semiconductor company's stock, valued at approximately $1,599,000. Microchip Technology comprises about 3.4% of Ground Swell Capital LLC's holdings, making the stock its 2nd largest holding.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Garde Capital Inc. bought a new stake in Microchip Technology during the first quarter valued at $30,000. Orion Capital Management LLC bought a new position in shares of Microchip Technology during the fourth quarter worth about $41,000. Byrne Asset Management LLC bought a new position in shares of Microchip Technology during the first quarter worth about $41,000. GW&K Investment Management LLC grew its position in shares of Microchip Technology by 161.0% during the first quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock worth $45,000 after acquiring an additional 578 shares during the last quarter. Finally, American National Bank & Trust bought a new position in shares of Microchip Technology during the first quarter worth about $48,000. Institutional investors own 91.51% of the company's stock.

Microchip Technology Trading Down 0.4%

MCHP stock traded down $0.28 during mid-day trading on Friday, reaching $65.71. 7,744,425 shares of the stock traded hands, compared to its average volume of 10,186,693. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. Microchip Technology Incorporated has a 52-week low of $34.13 and a 52-week high of $82.87. The company has a market cap of $35.46 billion, a P/E ratio of -193.26, a P/E/G ratio of 1.94 and a beta of 1.55. The stock's fifty day moving average is $69.75 and its 200-day moving average is $58.34.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.05 billion. During the same period in the prior year, the firm earned $0.53 earnings per share. The business's quarterly revenue was down 13.3% on a year-over-year basis. As a group, sell-side analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

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

Analysts Set New Price Targets

MCHP has been the subject of several recent research reports. B. Riley upped their price target on shares of Microchip Technology from $60.00 to $75.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Needham & Company LLC upped their price target on shares of Microchip Technology from $66.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Stifel Nicolaus upped their price objective on shares of Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Wall Street Zen raised shares of Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. Finally, KeyCorp upped their price objective on shares of Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. Six equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $76.58.

Insider Transactions at Microchip Technology

In other Microchip Technology news, Director Karlton D. Johnson sold 494 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director directly owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This represents a 12.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer directly owned 34,313 shares of the company's stock, valued at $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by corporate insiders.

About Microchip Technology

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.