Handelsbanken Fonder AB Decreases Stake in Microchip Technology Incorporated $MCHP

Key Points

• Handelsbanken Fonder AB cut its Microchip Technology stake by 22.6% in the fourth quarter, selling 73,609 shares and ending with 251,708 shares valued at about $16.0 million.
• Microchip posted stronger-than-expected quarterly results, with EPS of $0.57 topping estimates and revenue rising 35.1% year over year to $1.31 billion. The company also issued Q1 2027 EPS guidance of $0.67 to $0.71.
• Analysts remain broadly positive on MCHP, with multiple firms raising price targets and the consensus rating sitting at “Moderate Buy” with an average target of $97.52.

Handelsbanken Fonder AB reduced its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 22.6% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 251,708 shares of the semiconductor company's stock after selling 73,609 shares during the period. Handelsbanken Fonder AB's holdings in Microchip Technology were worth $16,039,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of MCHP. AQR Capital Management LLC increased its stake in Microchip Technology by 51.3% in the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after purchasing an additional 5,835 shares during the period. Geneos Wealth Management Inc. increased its stake in Microchip Technology by 101.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock worth $59,000 after purchasing an additional 616 shares during the period. Cresset Asset Management LLC increased its stake in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock worth $805,000 after purchasing an additional 589 shares during the period. AXA S.A. increased its stake in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock worth $3,628,000 after purchasing an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake in Microchip Technology by 1.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after purchasing an additional 3,851 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Price Performance

Shares of MCHP stock opened at $94.02 on Thursday. The firm has a market cap of $50.88 billion, a P/E ratio of 447.74, a P/E/G ratio of 0.97 and a beta of 1.75. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The business's 50 day moving average price is $77.74 and its 200-day moving average price is $71.18. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the company posted $0.11 earnings per share. The firm's revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts anticipate that Microchip Technology Incorporated will post 2.58 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. Microchip Technology's payout ratio is currently 866.67%.

Insider Buying and Selling at Microchip Technology

In related news, CEO Steve Sanghi sold 76,469 shares of Microchip Technology stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the sale, the chief executive officer directly owned 9,385,834 shares in the company, valued at $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 526,635 shares of company stock worth $47,138,254 in the last 90 days. Insiders own 1.94% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MCHP. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a research note on Wednesday, May 13th. Truist Financial lifted their price objective on Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Needham & Company LLC lifted their price objective on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Stifel Nicolaus set a $90.00 price objective on Microchip Technology in a research report on Friday, February 6th. Finally, Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $97.52.

Trending Headlines about Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Analysts have turned more constructive on Microchip Technology, with Barclays raising its price target to $105 from $80 while keeping an Equal Weight rating, and other Wall Street coverage pointing to roughly 26% implied upside. Here’s What the Street Thinks About Microchip Technology Incorporated (MCHP)
• Positive Sentiment: Earnings estimate revisions have been trending higher, which investors often read as a sign that near-term sentiment and fundamentals are improving for MCHP. Earnings Estimates Rising for Microchip Tech (MCHP): Will It Gain?
• Positive Sentiment: Microchip’s presentation at the J.P. Morgan 2026 Global Technology, Media and Communications Conference keeps the company in front of investors and may help reinforce the upbeat narrative around management execution and guidance. Microchip Technology to Present at the JP Morgan 2026 Global Technology, Media and Communications Conference
• Neutral Sentiment: The company’s CFO and investor relations team also participated in the conference, but no major new financial update was included in the announcement. Microchip Technology Incorporated (MCHP) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: Microchip and other chip stocks were hit earlier after the U.S.-China summit ended without clear progress on semiconductor sales to China, highlighting ongoing geopolitical risk for the sector. Teradyne, Kulicke and Soffa, Impinj, Microchip Technology, and IPG Photonics Shares Plummet, What You Need To Know
• Neutral Sentiment: A small insider sale by the COO was disclosed, but the transaction was minimal and does not appear material on its own. Microchip Technology Incorporated insider trade details

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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