Healthcare of Ontario Pension Plan Trust Fund Sells 423,636 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Healthcare of Ontario Pension Plan Trust Fund cut its Microchip Technology stake by 19.9% in Q4, selling 423,636 shares and ending with 1,702,618 shares worth about $108.5 million.
• Microchip Technology reported stronger-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion versus $1.26 billion expected, while revenue rose 35.1% year over year.
• Analysts remain broadly positive on the stock, with several price-target increases and an average rating of Moderate Buy; shares were also up 2.5% to $95.24, near their 52-week high.

Healthcare of Ontario Pension Plan Trust Fund reduced its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 19.9% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,702,618 shares of the semiconductor company's stock after selling 423,636 shares during the quarter. Healthcare of Ontario Pension Plan Trust Fund owned 0.31% of Microchip Technology worth $108,491,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in MCHP. AQR Capital Management LLC lifted its position in Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after buying an additional 5,835 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in 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 in the last quarter. Cresset Asset Management LLC lifted its position in 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 in the last quarter. AXA S.A. lifted its position in 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 in the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in Microchip Technology by 1.6% during 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 buying an additional 3,851 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Insider Activity

In other news, Director Matthew W. Chapman sold 3,000 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the sale, the director directly owned 17,665 shares of the company's stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 553,302 shares of company stock valued at $49,673,635 in the last 90 days. 1.94% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

MCHP has been the topic of several analyst reports. Barclays boosted their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Monday, May 11th. UBS Group reissued a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Wall Street Zen raised shares of Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Citigroup boosted their price target on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Wells Fargo & Company boosted their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research report on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $98.18.

Microchip Technology Stock Up 2.5%

Shares of MCHP stock opened at $95.24 on Friday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The firm's 50-day moving average is $87.85 and its 200-day moving average is $75.61. The stock has a market cap of $51.63 billion, a price-to-earnings ratio of 453.55, a PEG ratio of 1.00 and a beta of 1.73. Microchip Technology Incorporated has a 52-week low of $48.52 and a 52-week high of $105.91.

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

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology's dividend payout ratio is presently 866.67%.

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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