LHM Inc. Acquires New Position in Microchip Technology Incorporated $MCHP

Key Points

• LHM Inc. opened a new position in Microchip Technology, buying 82,086 shares worth about $5.23 million in the fourth quarter. The stock now represents 1.9% of LHM’s portfolio and its 18th-largest holding.
• Microchip Technology recently reported strong quarterly results, beating EPS and revenue expectations and posting 35.1% year-over-year revenue growth. The company also raised its Q1 2027 guidance, while analysts remain generally bullish with a “Moderate Buy” consensus.
• Despite positive operating momentum, insider selling has been notable, including share sales by CEO Steve Sanghi and COO Richard J. Simoncic. Insiders sold 545,302 shares worth about $48.9 million over the past three months.

LHM Inc. acquired a new stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 82,086 shares of the semiconductor company's stock, valued at approximately $5,231,000. Microchip Technology accounts for 1.9% of LHM Inc.'s holdings, making the stock its 18th largest holding.

A number of other institutional investors have also made changes to their positions in the stock. Intech Investment Management LLC grew its stake in shares of Microchip Technology by 0.8% during the fourth quarter. Intech Investment Management LLC now owns 24,117 shares of the semiconductor company's stock worth $1,537,000 after purchasing an additional 189 shares during the period. Huntington National Bank grew its stake in shares of Microchip Technology by 6.9% during the fourth quarter. Huntington National Bank now owns 19,987 shares of the semiconductor company's stock worth $1,274,000 after purchasing an additional 1,287 shares during the period. Texas Capital Bank Wealth Management Services Inc grew its stake in shares of Microchip Technology by 78.9% during the fourth quarter. Texas Capital Bank Wealth Management Services Inc now owns 7,383 shares of the semiconductor company's stock worth $470,000 after purchasing an additional 3,255 shares during the period. Geode Capital Management LLC grew its stake in shares of 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 purchasing an additional 213,188 shares during the period. Finally, TrustBank acquired a new stake in shares of Microchip Technology during the fourth quarter worth $203,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

MCHP has been the subject of several research reports. Susquehanna increased their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and set a $125.00 price target on shares of Microchip Technology in a research report on Wednesday, May 13th. Wells Fargo & Company increased their price objective on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Rosenblatt Securities increased their price target on Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Finally, UBS Group increased their price target on shares of Microchip Technology from $115.00 to $130.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and an average target price of $97.52.

Insider Activity

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of the stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the sale, the chief executive officer owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $93.44, for a total value of $467,200.00. Following the sale, the chief operating officer owned 135,508 shares in the company, valued at $12,661,867.52. The trade was a 3.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 545,302 shares of company stock valued at $48,893,475 in the last three months. 1.94% of the stock is owned by company insiders.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $96.04 on Friday. The stock has a market capitalization of $52.06 billion, a price-to-earnings ratio of 457.36, a price-to-earnings-growth ratio of 1.02 and a beta of 1.75. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The company has a 50-day simple moving average of $81.44 and a two-hundred day simple moving average of $72.65.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The business's revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Analysts forecast that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is presently 866.67%.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip’s presentation at TD Cowen’s Technology, Media & Telecom Conference kept investor focus on management’s latest outlook and execution, which can reinforce confidence in the company’s AI, data center, and industrial demand story. Microchip Technology Incorporated (MCHP) Presents at TD Cowen's 54th Annual Technology, Media & Telecom Conference Transcript
• Positive Sentiment: New commentary highlighted Microchip as an AI semiconductor beneficiary, citing strong demand trends and improving operating leverage after its recent earnings beat, which supports the bullish case for the stock. Microchip Technology Incorporated (MCHP) Capitalizes on Data Center and AI Boom
• Positive Sentiment: Technical coverage said MCHP recently moved above its 20-day moving average, signaling short-term momentum and suggesting traders are seeing a bullish breakout. Microchip Technology (MCHP) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Analyst sentiment remains constructive, with several firms reiterating buy ratings and raising price targets after the earnings report, reflecting confidence in the company’s growth and outlook. Why These 3 Automotive & Industrial Chip Stocks Just Soared
• Neutral Sentiment: Microchip was also mentioned in broader “AI stock” and “AI chip” lists, which adds visibility but does not by itself change the company’s fundamentals. 5 AI Stocks to Buy as Markets Defy "Sell in May and Go Away" Adage
• Negative Sentiment: Recent insider selling by the CFO and COO may create some caution among investors, even though the trades were small and the CFO sale was made under a pre-arranged 10b5-1 plan. Insider Selling: Microchip Technology NASDAQ: MCHP CFO Sells 3,667 Shares of Stock

About Microchip Technology

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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