KBC Group NV Grows Position in Microchip Technology Incorporated $MCHP

Key Points

• KBC Group NV increased its stake in Microchip Technology by 188.8% in the first quarter, adding 142,129 shares to bring its total to 217,412 shares worth about $14.0 million.
• Microchip Technology reported strong quarterly results, with EPS of $0.57 beating estimates and revenue of $1.31 billion topping expectations; revenue rose 35.1% year over year.
• Analyst sentiment remains constructive, with a Moderate Buy consensus and an average price target of $99.76, even as some insiders recently sold shares and the stock traded around $83.38.

KBC Group NV raised its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 188.8% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 217,412 shares of the semiconductor company's stock after acquiring an additional 142,129 shares during the quarter. KBC Group NV's holdings in Microchip Technology were worth $14,047,000 as of its most recent filing with the SEC.

Several other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in shares of Microchip Technology by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock valued at $4,683,824,000 after purchasing an additional 1,430,781 shares in the last quarter. State Street Corp lifted its stake in shares of Microchip Technology by 2.8% in the fourth quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock valued at $1,839,153,000 after purchasing an additional 783,157 shares during the period. Boston Partners boosted its holdings in Microchip Technology by 9.5% during the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock worth $1,044,024,000 after buying an additional 1,406,885 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Microchip Technology by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock worth $977,638,000 after buying an additional 213,188 shares in the last quarter. Finally, Invesco Ltd. grew its position in Microchip Technology by 4.8% during the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock worth $955,298,000 after buying an additional 684,561 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Stock Up 3.6%

MCHP stock opened at $83.38 on Wednesday. The company's 50 day simple moving average is $91.49 and its 200-day simple moving average is $80.84. The firm has a market capitalization of $45.28 billion, a PE ratio of 397.07, a P/E/G ratio of 0.81 and a beta of 1.74. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the firm posted $0.11 EPS. The company's quarterly revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts expect that Microchip Technology Incorporated will post 2.69 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Friday, May 22nd. Microchip Technology's dividend payout ratio is currently 866.67%.

Wall Street Analyst Weigh In

MCHP has been the topic of several research analyst reports. Rosenblatt Securities boosted their price target on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Truist Financial lifted their price objective on Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a report on Friday, May 8th. Wells Fargo & Company decreased their target price on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research report on Monday. Finally, Barclays upped their target price on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus target price of $99.76.

Insider Buying and Selling

In related news, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the transaction, the chief operating officer owned 130,508 shares of the company's stock, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Matthew W. Chapman sold 3,000 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the transaction, the director owned 17,665 shares in the company, valued at approximately $1,722,690.80. This trade represents a 14.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 553,302 shares of company stock valued at $49,673,635 over the last three months. Insiders own 1.79% of the company's stock.

Microchip Technology 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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