Jensen Investment Management Inc. Sells 10,650 Shares of Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Jensen Investment Management Inc. reduced its stake in Microchip Technology by 27.4%, owning 28,200 shares valued at approximately $1.365 million after selling 10,650 shares in the first quarter.
• Multiple institutional investors including Federated Hermes Inc. and Clearstead Trust LLC have increased their holdings in Microchip Technology, indicating a diverse investment interest in the company.
• Microchip Technology has received a mostly positive outlook from analysts, with six recommending a hold and thirteen giving it a buy rating, while the stock's average price target is set at $74.42.

Jensen Investment Management Inc. trimmed its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 27.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 28,200 shares of the semiconductor company's stock after selling 10,650 shares during the period. Jensen Investment Management Inc.'s holdings in Microchip Technology were worth $1,365,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of MCHP. Vanguard Group Inc. boosted its holdings in shares of Microchip Technology by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock worth $3,354,940,000 after purchasing an additional 390,269 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Microchip Technology by 138.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock worth $427,681,000 after buying an additional 5,136,154 shares during the last quarter. iA Global Asset Management Inc. boosted its stake in Microchip Technology by 2.3% in the first quarter. iA Global Asset Management Inc. now owns 59,202 shares of the semiconductor company's stock worth $2,866,000 after buying an additional 1,321 shares in the last quarter. New Age Alpha Advisors LLC bought a new position in Microchip Technology during the first quarter valued at approximately $3,042,000. Finally, Clearstead Trust LLC raised its stake in shares of Microchip Technology by 10.5% during the first quarter. Clearstead Trust LLC now owns 2,356 shares of the semiconductor company's stock worth $114,000 after acquiring an additional 224 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Trading Down 6.6%

Shares of NASDAQ MCHP traded down $4.35 during midday trading on Friday, hitting $61.87. 20,069,831 shares of the company traded hands, compared to its average volume of 8,773,815. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.47 and a current ratio of 2.59. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $82.87. The stock has a 50-day moving average price of $69.65 and a 200 day moving average price of $58.10. The firm has a market cap of $33.39 billion, a P/E ratio of -181.97, a P/E/G ratio of 1.79 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results 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. The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a positive return on equity of 6.33% and a negative net margin of 3.50%. The business's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.53 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, August 22nd. Microchip Technology's payout ratio is -18,200.00%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. UBS Group upped their price objective on shares of Microchip Technology from $65.00 to $85.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Evercore ISI upped their price target on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research report on Thursday, June 12th. Cantor Fitzgerald began coverage on Microchip Technology in a report on Wednesday, June 18th. They issued a "neutral" rating and a $70.00 price objective on the stock. Raymond James Financial increased their target price on Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a report on Friday. Finally, Susquehanna raised their price target on Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Six analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average target price of $76.58.

Insiders Place Their Bets

In related news, Director Karlton D. Johnson sold 494 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director owned 3,468 shares of the company's stock, valued at $210,472.92. The trade was a 12.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The shares were 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 $1,913,979.14. This represents a 5.55% decrease in their position. The disclosure for this sale can be found here. 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.