Jennison Associates LLC Makes New $5.93 Million Investment in Microchip Technology Incorporated $MCHP

Key Points

• Jennison Associates LLC opened a new position in Microchip (NASDAQ:MCHP) during Q4, buying 93,011 shares worth about $5.93 million, and other institutions (notably Pictet Asset Management) also added large stakes, leaving hedge funds and institutions owning roughly 91.51% of the stock.
• CEO Steve Sanghi sold 416,581 shares on April 23 at an average price of $88.53 for about $36.88 million under a pre‑arranged Rule 10b5‑1 plan, reducing his position by 4.2% (insiders now own 1.94%).
• Analysts rate Microchip an average “Moderate Buy” with a mean price target of $86 (Bank of America raised to a $95 buy), and the shares trade near their 52‑week high after a slight EPS beat and 15.6% year‑over‑year revenue growth.

Jennison Associates LLC acquired a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The firm acquired 93,011 shares of the semiconductor company's stock, valued at approximately $5,927,000.

Several other institutional investors also recently bought and sold shares of the company. Kohmann Bosshard Financial Services LLC purchased a new position in Microchip Technology during the 4th quarter worth $38,000. Vest Financial LLC increased its holdings in shares of Microchip Technology by 92.8% in the 4th quarter. Vest Financial LLC now owns 63,534 shares of the semiconductor company's stock valued at $4,048,000 after acquiring an additional 30,588 shares during the period. Washington Capital Management Inc. increased its holdings in shares of Microchip Technology by 10.8% in the 4th quarter. Washington Capital Management Inc. now owns 21,210 shares of the semiconductor company's stock valued at $1,352,000 after acquiring an additional 2,075 shares during the period. Pictet Asset Management Holding SA increased its holdings in shares of Microchip Technology by 25.4% in the 4th quarter. Pictet Asset Management Holding SA now owns 4,862,384 shares of the semiconductor company's stock valued at $309,867,000 after acquiring an additional 985,586 shares during the period. Finally, Verdence Capital Advisors LLC increased its holdings in shares of Microchip Technology by 2.2% in the 4th quarter. Verdence Capital Advisors LLC now owns 7,120 shares of the semiconductor company's stock valued at $454,000 after acquiring an additional 150 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MCHP. Weiss Ratings upgraded Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, April 24th. Stifel Nicolaus set a $90.00 price target on Microchip Technology in a report on Friday, February 6th. Piper Sandler raised their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the company an "overweight" rating in a research note on Thursday, January 15th. Wall Street Zen downgraded shares of Microchip Technology from a "buy" rating to a "hold" rating in a research note on Saturday, April 25th. Finally, Bank of America raised Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 target price on the stock in a research report on Wednesday, January 28th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $86.00.

Microchip Technology Stock Up 1.1%

Microchip Technology stock opened at $93.95 on Friday. The company has a market cap of $50.84 billion, a PE ratio of -323.97, a PEG ratio of 1.26 and a beta of 1.74. The business's 50-day simple moving average is $71.81 and its two-hundred day simple moving average is $68.42. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. Microchip Technology Incorporated has a fifty-two week low of $46.68 and a fifty-two week high of $94.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The company's revenue for the quarter was up 15.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Equities analysts anticipate that Microchip Technology Incorporated will post 1.16 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Monday, February 23rd. Microchip Technology's payout ratio is -627.59%.

Insider Activity

In other news, CEO Steve Sanghi sold 416,581 shares of the business's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the transaction, the chief executive officer owned 9,495,805 shares of the company's stock, valued at $840,663,616.65. The trade was a 4.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.94% of the stock is currently owned by company insiders.

Microchip Technology Company Profile

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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