Microchip Technology Incorporated $MCHP Shares Sold by Guggenheim Capital LLC

Key Points

• Guggenheim Capital LLC decreased its holdings in Microchip Technology by 8.6%, selling 20,674 shares, and is now valued at approximately $10.6 million.
• Microchip Technology recently reported earnings of $0.27 per share, surpassing analysts' expectations, despite a 13.3% year-over-year revenue decline.
• The company announced a quarterly dividend of $0.455 per share, contributing to an annualized yield of 2.8%. The payout ratio is notably negative at -535.29%.

Guggenheim Capital LLC lessened its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 8.6% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 219,279 shares of the semiconductor company's stock after selling 20,674 shares during the period. Guggenheim Capital LLC's holdings in Microchip Technology were worth $10,615,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Garde Capital Inc. acquired a new stake in shares of Microchip Technology in the 1st quarter worth $30,000. Orion Capital Management LLC acquired a new stake in shares of Microchip Technology in the fourth quarter valued at about $41,000. Byrne Asset Management LLC acquired a new stake in shares of Microchip Technology in the first quarter valued at about $41,000. GW&K Investment Management LLC lifted its stake in shares of Microchip Technology by 161.0% in the first quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after purchasing an additional 578 shares during the period. Finally, American National Bank & Trust acquired a new stake in shares of Microchip Technology in the first quarter valued at about $48,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on MCHP shares. Evercore ISI raised their price objective on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research note on Thursday, June 12th. Stifel Nicolaus raised their price objective on shares of Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research note on Friday, July 18th. B. Riley raised their price objective on shares of Microchip Technology from $60.00 to $75.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Cantor Fitzgerald started coverage on shares of Microchip Technology in a research note on Wednesday, June 18th. They issued a "neutral" rating and a $70.00 price objective for the company. Finally, Zacks Research cut shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 18th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $76.58.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the sale, the chief financial officer directly owned 30,010 shares in the company, valued at $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the sale, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. This trade represents a 24.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.94% of the company's stock.

Microchip Technology Price Performance

NASDAQ:MCHP traded down $0.25 during mid-day trading on Friday, hitting $65.00. 9,209,632 shares of the company's stock traded hands, compared to its average volume of 9,431,667. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The firm's 50 day simple moving average is $69.42 and its 200 day simple moving average is $59.32. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $82.65. The company has a market cap of $35.08 billion, a PE ratio of -191.18, a price-to-earnings-growth ratio of 1.88 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period last year, the firm posted $0.53 EPS. The firm's revenue for the quarter was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Sell-side analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

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

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.