Hosking Partners LLP Grows Stock Holdings in Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Hosking Partners LLP increased its stake in Microchip Technology by 187.5%, acquiring 148,584 shares for a total of 227,843 shares valued at $11,030,000.
• Microchip Technology reported a Q2 EPS of $0.27, exceeding analysts' expectations of $0.24, although quarterly revenue decreased 13.3% year-over-year.
• The company announced a quarterly dividend of $0.455 per share, with a dividend yield of 2.9%, set to be paid on September 5th.

Hosking Partners LLP lifted its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 187.5% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 227,843 shares of the semiconductor company's stock after buying an additional 148,584 shares during the period. Hosking Partners LLP's holdings in Microchip Technology were worth $11,030,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. First Citizens Bank & Trust Co. boosted its stake in shares of Microchip Technology by 468.2% during the first quarter. First Citizens Bank & Trust Co. now owns 73,737 shares of the semiconductor company's stock worth $3,570,000 after buying an additional 60,760 shares during the period. Everhart Financial Group Inc. acquired a new stake in shares of Microchip Technology during the first quarter worth about $221,000. Texas Bank & Trust Co acquired a new stake in shares of Microchip Technology during the fourth quarter worth about $792,000. Czech National Bank lifted its position in Microchip Technology by 6.1% in the first quarter. Czech National Bank now owns 123,528 shares of the semiconductor company's stock valued at $5,980,000 after purchasing an additional 7,093 shares during the period. Finally, Sowell Financial Services LLC acquired a new stake in Microchip Technology in the first quarter valued at about $318,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Analysts Set New Price Targets

MCHP has been the subject of a number of recent analyst reports. The Goldman Sachs Group initiated coverage on shares of Microchip Technology in a research report on Thursday, July 10th. They issued a "buy" rating and a $88.00 price objective for the company. KeyCorp raised their price objective 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. Rosenblatt Securities raised their price objective on shares of Microchip Technology from $63.00 to $70.00 and gave the company a "buy" rating in a research report on Friday, May 30th. Morgan Stanley raised their price objective on shares of Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a research report on Friday, May 9th. Finally, Piper Sandler raised their price objective on shares of Microchip Technology from $65.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday. Six investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy 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 $76.58.

Microchip Technology Price Performance

Shares of MCHP traded up $3.55 during mid-day trading on Tuesday, reaching $64.50. 12,673,559 shares of the company's stock were exchanged, compared to its average volume of 10,567,588. 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 company has a 50-day simple moving average of $69.67 and a two-hundred day simple moving average of $58.12. Microchip Technology Incorporated has a 52-week low of $34.13 and a 52-week high of $82.87. The company has a market cap of $34.81 billion, a price-to-earnings ratio of -189.71, a PEG ratio of 1.79 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same period last year, the company posted $0.53 EPS. The company's revenue was down 13.3% on a year-over-year basis. On average, sell-side analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, August 22nd. Microchip Technology's dividend payout ratio (DPR) is -535.29%.

Insider Buying and Selling

In other news, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the transaction, the director directly owned 3,468 shares of the company's stock, valued at $210,472.92. This trade represents a 12.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the transaction, the chief financial officer directly owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Microchip Technology Company Profile

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.