Madison Asset Management LLC Lowers Position in Microchip Technology Incorporated $MCHP

Key Points

• Madison Asset Management cut its Microchip Technology stake by 9.5% in the first quarter, selling 15,522 shares and ending with 147,781 shares worth about $9.55 million.
• Insider selling has been notable: CEO Steve Sanghi and Director Matthew W. Chapman both sold shares, and insiders collectively sold 553,302 shares worth nearly $49.7 million over the past 90 days.
• Microchip Technology beat earnings expectations in its latest quarter, reporting $0.57 EPS on $1.31 billion in revenue, while analysts maintain a Moderate Buy consensus with a $99.76 target price.

Madison Asset Management LLC lessened its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 9.5% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 147,781 shares of the semiconductor company's stock after selling 15,522 shares during the quarter. Madison Asset Management LLC's holdings in Microchip Technology were worth $9,548,000 at the end of the most recent reporting period.

Other institutional investors have also bought and sold shares of the company. EFG International AG purchased a new stake in Microchip Technology in the 4th quarter valued at $29,000. Miller Capital Partners Inc. purchased a new position in Microchip Technology during the 4th quarter worth $29,000. Reflection Asset Management purchased a new position in Microchip Technology during the 4th quarter worth $33,000. Garton & Associates Financial Advisors LLC purchased a new position in Microchip Technology during the 4th quarter worth $33,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in shares of Microchip Technology by 4,663.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 513 shares in the last quarter. Institutional investors own 91.51% of the company's stock.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 416,581 shares of the business's stock in a transaction that occurred on 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 sale, the chief executive officer owned 9,495,805 shares of the company's stock, valued at $840,663,616.65. The trade was a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $95.48, for a total transaction of $954,800.00. Following the sale, the director owned 20,665 shares in the company, valued at $1,973,094.20. The trade was a 32.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 553,302 shares of company stock worth $49,673,635 over the last ninety days. Company insiders own 1.79% of the company's stock.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $83.38 on Wednesday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The business has a fifty day simple moving average of $91.49 and a two-hundred day simple moving average of $80.84. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a market capitalization of $45.28 billion, a P/E ratio of 397.07, a P/E/G ratio of 0.81 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 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% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts expect that Microchip Technology Incorporated will post 2.69 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed 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 annualized dividend and a yield of 2.2%. Microchip Technology's dividend payout ratio is 866.67%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MCHP. Zacks Research upgraded shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. UBS Group reaffirmed a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Susquehanna upped 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. Barclays increased their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus target price of $99.76.

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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