Gulf International Bank UK Ltd Sells 12,512 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Gulf International Bank UK Ltd has reduced its stake in Microchip Technology by 29.4%, resulting in ownership of 30,047 shares previously valued at $1.45 million.
• Microchip Technology’s Q2 earnings beat expectations with a reported $0.27 EPS, exceeding the consensus estimate of $0.24, despite a 13.3% year-over-year revenue decline.
• The company declared a quarterly dividend of $0.455, with a yield of 2.8%, scheduled for payment on September 5th to shareholders recorded by August 22nd.

Gulf International Bank UK Ltd trimmed its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 29.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 30,047 shares of the semiconductor company's stock after selling 12,512 shares during the quarter. Gulf International Bank UK Ltd's holdings in Microchip Technology were worth $1,454,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Microchip Technology Stock Performance

MCHP traded up $1.4730 during trading on Wednesday, reaching $66.1830. 6,193,530 shares of the company's stock were exchanged, compared to its average volume of 10,413,656. Microchip Technology Incorporated has a fifty-two week low of $34.13 and a fifty-two week high of $82.87. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The business has a 50 day moving average price of $69.60 and a 200 day moving average price of $58.50. The company has a market capitalization of $35.72 billion, a P/E ratio of -194.32, a PEG ratio of 1.91 and a beta of 1.55.

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

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, August 22nd. Microchip Technology's payout ratio is currently -535.29%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 2,015 shares of Microchip Technology stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $55.78, for a total value of $112,396.70. Following the completion of the transaction, the chief financial officer directly owned 34,313 shares of the company's stock, valued at $1,913,979.14. The trade was a 5.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.94% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on MCHP shares. Zacks Research lowered shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday. KeyCorp lifted their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Raymond James Financial lifted their price target on shares of Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a research report on Friday, August 8th. Wall Street Zen raised shares of Microchip Technology from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Finally, Piper Sandler lifted their price target on shares of Microchip Technology from $65.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $76.58.

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.