Hosking Partners LLP Buys 14,499 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Hosking Partners LLP increased its stake in Microchip Technology by 6.4% in the fourth quarter, buying 14,499 additional shares and bringing its total holding to 240,169 shares worth about $15.3 million.
• Microchip posted strong fiscal Q4 results, beating both earnings and revenue estimates as sales rose 35.1% year over year, alongside improved bookings that suggest a demand recovery is taking hold.
• Wall Street turned more bullish after the earnings beat, with several analysts raising price targets into the $113-$120 range and the company also boosting its quarterly dividend to $0.455 per share.

Hosking Partners LLP lifted its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 6.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 240,169 shares of the semiconductor company's stock after buying an additional 14,499 shares during the period. Hosking Partners LLP's holdings in Microchip Technology were worth $15,304,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Winnow Wealth LLC bought a new stake in Microchip Technology during the 3rd quarter worth approximately $25,000. Root Financial Partners LLC bought a new stake in Microchip Technology during the 3rd quarter worth approximately $28,000. Quent Capital LLC bought a new stake in Microchip Technology during the 3rd quarter worth approximately $32,000. GoalVest Advisory LLC increased its stake in Microchip Technology by 174.0% during the 4th quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 348 shares in the last quarter. Finally, Board of the Pension Protection Fund bought a new stake in Microchip Technology during the 4th quarter worth approximately $38,000. Institutional investors own 91.51% of the company's stock.

Microchip Technology News Summary

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

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

Microchip Technology Stock Performance

Shares of Microchip Technology stock opened at $99.09 on Monday. The business has a fifty day simple moving average of $73.27 and a two-hundred day simple moving average of $69.20. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a market capitalization of $53.62 billion, a price-to-earnings ratio of 471.88, a P/E/G ratio of 1.32 and a beta of 1.75. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) 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 business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm posted $0.11 EPS. The company's quarterly 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. Research analysts forecast that Microchip Technology Incorporated will post 2.14 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be issued a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 1.8%. Microchip Technology's dividend payout ratio (DPR) is currently 866.67%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on MCHP shares. Susquehanna increased their target price on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a report on Friday. Citigroup increased their target price on Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a report on Friday. Cantor Fitzgerald increased their target price on Microchip Technology from $85.00 to $100.00 and gave the stock an "overweight" rating in a report on Monday, February 2nd. KeyCorp reiterated an "overweight" rating and set a $85.00 target price on shares of Microchip Technology in a report on Friday, February 6th. Finally, Rosenblatt Securities upped their price target on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $95.35.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the firm's stock in a transaction 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 completion of the sale, the chief executive officer owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. This trade represents a 0.81% decrease in their position. The sale 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. Over the last three months, insiders sold 526,552 shares of company stock worth $47,130,465. Company insiders own 1.94% of the company's stock.

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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