Magnetar Financial LLC Raises Position in Microchip Technology Incorporated $MCHP

Key Points

• Magnetar Financial LLC increased its Microchip Technology stake by 146.1% in the fourth quarter, buying 41,605 more shares to reach 70,089 shares valued at about $4.47 million.
• 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 broadly positive on MCHP, with a consensus rating of Moderate Buy and an average price target of $98.18. Several firms recently raised targets, including Rosenblatt to $120 and Cantor Fitzgerald to $125.

Magnetar Financial LLC raised its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 146.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 70,089 shares of the semiconductor company's stock after purchasing an additional 41,605 shares during the period. Magnetar Financial LLC's holdings in Microchip Technology were worth $4,466,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Rakuten Investment Management Inc. raised its position in Microchip Technology by 402.5% during the fourth quarter. Rakuten Investment Management Inc. now owns 150,083 shares of the semiconductor company's stock valued at $9,703,000 after purchasing an additional 120,215 shares during the period. Talos Eurisko Asset Management LP raised its position in Microchip Technology by 2.8% during the fourth quarter. Talos Eurisko Asset Management LP now owns 289,600 shares of the semiconductor company's stock valued at $18,453,000 after purchasing an additional 7,900 shares during the period. Silvant Capital Management LLC raised its holdings in shares of Microchip Technology by 14.1% in the fourth quarter. Silvant Capital Management LLC now owns 59,271 shares of the semiconductor company's stock worth $3,777,000 after buying an additional 7,335 shares during the period. Venture Visionary Partners LLC raised its holdings in shares of Microchip Technology by 73.5% in the fourth quarter. Venture Visionary Partners LLC now owns 17,508 shares of the semiconductor company's stock worth $1,116,000 after buying an additional 7,415 shares during the period. Finally, MML Investors Services LLC raised its holdings in shares of Microchip Technology by 4.2% in the fourth quarter. MML Investors Services LLC now owns 48,220 shares of the semiconductor company's stock worth $3,073,000 after buying an additional 1,945 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Stock Down 4.7%

Shares of NASDAQ:MCHP opened at $95.63 on Wednesday. Microchip Technology Incorporated has a 52-week low of $48.52 and a 52-week high of $105.91. The stock has a market cap of $51.84 billion, a P/E ratio of 455.40, a price-to-earnings-growth ratio of 1.06 and a beta of 1.73. The business's 50 day moving average is $89.15 and its 200 day moving average is $76.43. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced 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. The company 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%.Microchip Technology's revenue was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Sell-side analysts predict that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on MCHP. Rosenblatt Securities increased their price target on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Wall Street Zen upgraded Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Wells Fargo & Company increased their price target on Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Finally, Barclays increased their price target on Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Four analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $98.18.

Insider Buying and Selling

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 of the company's stock, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the sale, the director directly owned 17,665 shares in the company, valued at $1,722,690.80. This trade represents a 14.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 553,302 shares of company stock worth $49,673,635 over the last quarter. Insiders own 1.94% of the company's 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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