Janney Montgomery Scott LLC Cuts Position in Microchip Technology Incorporated $MCHP

Key Points

• Janney Montgomery Scott LLC reduced its stake in Microchip Technology by 7.6%, owning 94,693 shares after selling 7,798 shares in the second quarter, valued at approximately $6.66 million.
• Multiple analysts have recently updated their price targets for Microchip Technology, with UBS raising its target from $65.00 to $85.00 and maintaining a "buy" rating.
• Microchip Technology announced a $0.455 quarterly dividend, translating to an annual yield of 2.7%, despite having a negative dividend payout ratio of -535.29%.

Janney Montgomery Scott LLC decreased its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 7.6% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 94,693 shares of the semiconductor company's stock after selling 7,798 shares during the quarter. Janney Montgomery Scott LLC's holdings in Microchip Technology were worth $6,664,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of the business. Garde Capital Inc. acquired a new stake in Microchip Technology in the first quarter valued at $30,000. MCF Advisors LLC grew its holdings in Microchip Technology by 211.2% in the second quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 321 shares during the last quarter. Carderock Capital Management Inc. acquired a new stake in Microchip Technology in the second quarter valued at $39,000. WPG Advisers LLC acquired a new stake in Microchip Technology in the first quarter valued at $40,000. Finally, Painted Porch Advisors LLC acquired a new stake in Microchip Technology in the second quarter valued at $40,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Insider Activity at Microchip Technology

In other news, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the transaction, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.25, for a total value of $682,500.00. Following the completion of the transaction, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. UBS Group upped their target price on Microchip Technology from $65.00 to $85.00 and gave the company a "buy" rating in a report on Monday, July 7th. Piper Sandler increased their price objective on Microchip Technology from $65.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Evercore ISI increased their price objective on Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research note on Thursday, June 12th. TD Cowen decreased their price objective on Microchip Technology from $75.00 to $60.00 and set a "hold" rating on the stock in a research note on Friday, August 8th. Finally, Wells Fargo & Company assumed coverage on Microchip Technology in a research note on Monday, September 15th. They set an "equal weight" rating and a $60.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $75.75.

Microchip Technology Price Performance

Shares of MCHP opened at $66.54 on Monday. The firm has a market cap of $35.91 billion, a price-to-earnings ratio of -195.71, a PEG ratio of 1.91 and a beta of 1.55. The stock has a 50 day moving average of $65.67 and a 200-day moving average of $60.69. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. Microchip Technology Incorporated has a 52 week low of $34.13 and a 52 week high of $79.53.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.05 billion. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The business's revenue was down 13.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 22nd were given a $0.455 dividend. The ex-dividend date was Friday, August 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.7%. Microchip Technology's dividend payout ratio (DPR) is presently -535.29%.

About Microchip Technology

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.

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