JPMorgan Chase & Co. Trims Stock Holdings in Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• JPMorgan Chase & Co. significantly reduced its holdings in Microchip Technology by 70.6%, owning 11,118,759 shares after selling 26,655,010 in the first quarter.
• Several analysts have raised their price targets for Microchip Technology, with Citigroup increasing it from $68.00 to $90.00 and assigning a "buy" rating.
• Microchip Technology announced a quarterly dividend of $0.455 per share, set to be paid on September 5th, representing a dividend yield of 3.0%.

JPMorgan Chase & Co. trimmed its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 70.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 11,118,759 shares of the semiconductor company's stock after selling 26,655,010 shares during the period. JPMorgan Chase & Co. owned approximately 2.07% of Microchip Technology worth $538,259,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also bought and sold shares of MCHP. Federated Hermes Inc. grew its stake in Microchip Technology by 0.5% in the 4th quarter. Federated Hermes Inc. now owns 39,298 shares of the semiconductor company's stock valued at $2,254,000 after buying an additional 209 shares in the last quarter. Covestor Ltd grew its stake in Microchip Technology by 346.3% in the 4th quarter. Covestor Ltd now owns 1,455 shares of the semiconductor company's stock valued at $83,000 after buying an additional 1,129 shares in the last quarter. Sagespring Wealth Partners LLC purchased a new position in Microchip Technology in the 4th quarter valued at approximately $235,000. Mariner LLC grew its stake in Microchip Technology by 48.8% in the 4th quarter. Mariner LLC now owns 864,454 shares of the semiconductor company's stock valued at $49,570,000 after buying an additional 283,632 shares in the last quarter. Finally, CreativeOne Wealth LLC boosted its holdings in Microchip Technology by 1.0% in the 4th quarter. CreativeOne Wealth LLC now owns 28,842 shares of the semiconductor company's stock valued at $1,654,000 after purchasing an additional 283 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have commented on MCHP shares. Raymond James Financial raised their price target on shares of Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a report on Friday. Citigroup raised their price target on shares of Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a report on Monday, July 7th. B. Riley raised their price target on shares of Microchip Technology from $60.00 to $75.00 and gave the company a "buy" rating in a report on Friday, May 9th. Morgan Stanley raised their price target on shares of Microchip Technology from $39.00 to $50.00 and gave the company an "equal weight" rating in a report on Friday, May 9th. Finally, Susquehanna raised their price target on shares of Microchip Technology from $60.00 to $90.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Six analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $76.58.

Microchip Technology Price Performance

MCHP stock opened at $60.95 on Tuesday. The firm's 50-day moving average price is $69.67 and its two-hundred day moving average price is $58.12. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $82.87. The stock has a market capitalization of $32.89 billion, a price-to-earnings ratio of -179.26, a PEG ratio of 1.79 and a beta of 1.55. 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 (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.05 billion. During the same quarter in the previous year, the company earned $0.53 earnings per share. The company's revenue for the quarter was down 13.3% compared to the same quarter last year. As a group, equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently announced 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. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.0%. Microchip Technology's payout ratio is presently -535.29%.

Insider Transactions at Microchip Technology

In other news, Director Karlton D. Johnson sold 494 shares of Microchip Technology 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 approximately $210,472.92. The trade was a 12.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO James Eric Bjornholt sold 2,015 shares of Microchip Technology stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the sale, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. The trade was 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.

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