Massachusetts Financial Services Co. MA Sells 59,690 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Massachusetts Financial Services cut its Microchip Technology stake by 12.2% in the second quarter, selling 59,690 shares and retaining 430,040 shares valued at approximately $39.2 million. Institutional investors collectively own 91.51% of MCHP.
• Analyst sentiment remains favorable, with Microchip carrying a consensus “Moderate Buy” rating and an average price target of $98.85, despite some recent target reductions.
• Microchip exceeded quarterly expectations, reporting $0.76 EPS and $1.48 billion in revenue, with revenue up 38% year over year. The company also declared a quarterly dividend of $0.455 per share, implying a 2.3% annualized yield.

Massachusetts Financial Services Co. MA trimmed its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 12.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 430,040 shares of the semiconductor company's stock after selling 59,690 shares during the period. Massachusetts Financial Services Co. MA owned approximately 0.08% of Microchip Technology worth $39,220,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the business. AQR Capital Management LLC grew its holdings in Microchip Technology by 51.3% in the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after buying an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. increased its position in Microchip Technology by 101.8% during the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock worth $59,000 after acquiring an additional 616 shares during the period. Cresset Asset Management LLC boosted its holdings in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after purchasing an additional 589 shares during the period. AXA S.A. grew its position in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock worth $3,628,000 after purchasing an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its holdings in shares of Microchip Technology by 1.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after purchasing an additional 3,851 shares during the period. 91.51% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research firms recently weighed in on MCHP. Zacks Research raised Microchip Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Susquehanna raised their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. lifted their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Truist Financial lowered their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research report on Friday, August 7th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $125.00 target price on shares of Microchip Technology in a research report on Monday, August 3rd. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus price target of $98.85.

Microchip Technology Trading Up 1.9%

Shares of MCHP opened at $79.17 on Friday. The stock has a 50 day simple moving average of $85.72 and a 200-day simple moving average of $81.47. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The stock has a market cap of $42.99 billion, a PE ratio of 118.17, a PEG ratio of 0.61 and a beta of 1.76. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The business had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm's revenue for the quarter was up 38.0% on a year-over-year basis. During the same quarter last year, the company posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, sell-side analysts predict that Microchip Technology Incorporated will post 2.81 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology's payout ratio is currently 271.64%.

Insiders Place Their Bets

In related news, CFO James Eric Bjornholt sold 3,667 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at $12,727,140.16. This trade represents a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 16,667 shares of company stock valued at $1,580,580 in the last 90 days. 1.79% of the stock is currently 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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