Louisiana State Employees Retirement System Purchases New Shares in Microchip Technology Incorporated $MCHP

Key Points

• Louisiana State Employees Retirement System opened a new position in Microchip Technology, buying 63,100 shares worth about $4.1 million in the first quarter.
• Microchip Technology reported better-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion versus $1.26 billion expected. Revenue rose 35.1% year over year.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average price target of $98.18, while institutional investors continue to own more than 91% of the company.

Louisiana State Employees Retirement System bought a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 63,100 shares of the semiconductor company's stock, valued at approximately $4,077,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Norges Bank purchased a new stake in shares of Microchip Technology during the 4th quarter valued at $664,564,000. Barclays PLC boosted its holdings in shares of Microchip Technology by 66.5% in the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock worth $891,881,000 after buying an additional 5,590,210 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC boosted its holdings in shares of Microchip Technology by 25.7% in the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock worth $709,506,000 after buying an additional 2,257,932 shares during the last quarter. Holocene Advisors LP grew its position in Microchip Technology by 77.0% during the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after buying an additional 2,049,249 shares during the period. Finally, Rafferty Asset Management LLC grew its position in Microchip Technology by 41.0% during the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after buying an additional 1,803,945 shares during the period. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Price Performance

NASDAQ MCHP opened at $87.93 on Friday. 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 market cap of $47.67 billion, a PE ratio of 418.73, a price-to-earnings-growth ratio of 0.96 and a beta of 1.73. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The firm's 50-day simple moving average is $93.01 and its two-hundred day simple moving average is $78.37.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company's revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the company earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Research analysts predict that Microchip Technology Incorporated will post 2.66 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were issued a dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.1%. Microchip Technology's payout ratio is presently 866.67%.

Analyst Ratings Changes

MCHP has been the topic of several research reports. Truist Financial lifted their price objective on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Wells Fargo & Company increased their target price on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Cantor Fitzgerald restated an "overweight" rating and set a $125.00 price target on shares of Microchip Technology in a research note on Wednesday, May 13th. JPMorgan Chase & Co. lifted their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Finally, Susquehanna upped their price objective on Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research note on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus price target of $98.18.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 3,000 shares of the firm's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director directly owned 17,665 shares of the company's stock, valued at $1,722,690.80. The trade was a 14.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 553,302 shares of company stock worth $49,673,635. 1.94% of the stock is owned by insiders.

Microchip Technology Company 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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