Harel Insurance Investments & Financial Services Ltd. Purchases New Stake in Microchip Technology Incorporated $MCHP

Key Points

• Harel Insurance Investments purchased 116,350 shares of Microchip Technology worth approximately $10.6 million in the second quarter. Institutional investors collectively own 91.51% of the company.
• Microchip reported quarterly EPS of $0.76, exceeding the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion. The company issued guidance for fiscal Q2 2027 EPS of $0.91–$0.95.
• The company declared a quarterly dividend of $0.455 per share, equivalent to a 2.3% annualized yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.85, although recent insider sales and mixed target-price changes add caution.

Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 116,350 shares of the semiconductor company's stock, valued at approximately $10,611,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its position in shares of Microchip Technology by 51.3% in the first quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after purchasing an additional 5,835 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock worth $59,000 after buying an additional 616 shares during the last quarter. Cresset Asset Management LLC boosted its holdings in shares of Microchip Technology by 5.4% during the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock worth $805,000 after buying an additional 589 shares during the period. AXA S.A. boosted its holdings in shares of Microchip Technology by 21.3% during the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock worth $3,628,000 after buying an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina grew 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 valued at $17,348,000 after buying an additional 3,851 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

Insider Activity at Microchip Technology

In related news, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the sale, the director owned 17,665 shares of the company's stock, valued at $1,722,690.80. This represents a 14.52% 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, CFO James Eric Bjornholt sold 3,667 shares of the firm's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 16,667 shares of company stock worth $1,580,580. Company insiders own 1.79% of the company's stock.

Microchip Technology Price Performance

NASDAQ:MCHP opened at $77.69 on Friday. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The firm has a market cap of $42.19 billion, a price-to-earnings ratio of 115.96, a P/E/G ratio of 0.62 and a beta of 1.76. The firm's 50-day simple moving average is $85.90 and its 200 day simple moving average is $81.49. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the firm posted $0.27 EPS. The business's revenue for the quarter was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, sell-side analysts predict that Microchip Technology Incorporated will post 2.81 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be given a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Monday, August 24th. Microchip Technology's payout ratio is presently 271.64%.

Analyst Ratings Changes

Several research analysts have weighed in on MCHP shares. Cantor Fitzgerald reissued an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a report on Monday, August 3rd. Weiss Ratings upgraded Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday. Rosenblatt Securities reaffirmed a "buy" rating and issued a $120.00 target price on shares of Microchip Technology in a research report on Friday, August 7th. Susquehanna increased their target price on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Finally, Truist Financial dropped their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $98.85.

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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