Liberty Capital Management Inc. Makes New Investment in Microchip Technology Incorporated $MCHP

Key Points

• Liberty Capital Management Inc. has acquired 4,044 shares of Microchip Technology, valued at approximately $285,000, during the second quarter.
• Brokerage firms have raised their price targets for Microchip Technology, with Citigroup establishing a new target of $90.00 and maintaining a "buy" rating.
• Microchip Technology recently announced a quarterly dividend of $0.455, translating to an annualized yield of 2.8%, despite a negative net margin of 3.50%.

Liberty Capital Management Inc. acquired a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 4,044 shares of the semiconductor company's stock, valued at approximately $285,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of Microchip Technology by 0.6% in the first quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock worth $3,354,940,000 after buying an additional 390,269 shares during the period. Invesco Ltd. boosted its stake in Microchip Technology by 63.0% in the 1st quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after purchasing an additional 6,459,123 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in Microchip Technology by 0.9% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company's stock worth $805,087,000 after purchasing an additional 152,434 shares during the period. Boston Partners boosted its position in shares of Microchip Technology by 35.3% in the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock worth $517,082,000 after buying an additional 2,795,650 shares during the period. Finally, Amundi boosted its position in shares of Microchip Technology by 22.7% in the first quarter. Amundi now owns 10,013,285 shares of the semiconductor company's stock worth $484,743,000 after buying an additional 1,849,866 shares during the period. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MCHP. Citigroup raised their target price on Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Truist Financial raised their price target on shares of Microchip Technology from $52.00 to $64.00 and gave the stock a "hold" rating in a report on Wednesday, June 18th. Stifel Nicolaus raised their price target on shares of Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Evercore ISI raised their price target on shares of Microchip Technology from $69.00 to $83.00 and gave the stock an "outperform" rating in a report on Thursday, June 12th. Finally, The Goldman Sachs Group began coverage on shares of Microchip Technology in a research note on Thursday, July 10th. They set a "buy" rating and a $88.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $75.75.

Microchip Technology Price Performance

NASDAQ MCHP opened at $64.22 on Wednesday. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $34.66 billion, a PE ratio of -188.88, a price-to-earnings-growth ratio of 1.84 and a beta of 1.56. The company has a 50 day moving average price of $65.88 and a two-hundred day moving average price of $60.39. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $80.33.

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 (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 during the quarter, compared to analysts' expectations of $1.05 billion. During the same period in the previous year, the company earned $0.53 earnings per share. The company's revenue was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a $0.455 dividend. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. Microchip Technology's payout ratio is currently -535.29%.

Insider Activity at Microchip Technology

In other news, Director Matthew W. Chapman sold 10,000 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.25, for a total value of $682,500.00. Following the completion of the sale, the director directly owned 30,665 shares in the company, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the business's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the sale, the chief financial officer owned 30,010 shares of the company's stock, valued at $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by insiders.

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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