Microchip Technology Incorporated $MCHP Position Reduced by CenterBook Partners LP

Key Points

• CenterBook Partners cut its Microchip Technology stake by 75.5% in the third quarter, selling 85,599 shares and retaining 27,797 shares valued at about $2.16 million. Institutional investors collectively own 91.51% of the company.
• Microchip beat fiscal Q2 estimates, reporting EPS of $0.97 and revenue of $1.62 billion, up 42.2% year over year. However, its fiscal Q3 outlook was weaker than consensus, and several analysts lowered their price targets.
• The company declared a quarterly dividend of $0.455 per share, or $1.82 annualized, representing a yield of about 3.1%.

CenterBook Partners LP decreased its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 75.5% during the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 27,797 shares of the semiconductor company's stock after selling 85,599 shares during the quarter. CenterBook Partners LP's holdings in Microchip Technology were worth $2,162,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of MCHP. Heritage Family Offices LLP purchased a new stake in Microchip Technology during the third quarter valued at approximately $47,000. Alta Advisers Ltd raised its position in Microchip Technology by 75.2% in the third quarter. Alta Advisers Ltd now owns 3,866 shares of the semiconductor company's stock worth $301,000 after acquiring an additional 1,659 shares during the period. Argonautica Private Wealth Management Inc. raised its position in Microchip Technology by 12.9% in the third quarter. Argonautica Private Wealth Management Inc. now owns 6,774 shares of the semiconductor company's stock worth $527,000 after acquiring an additional 774 shares during the period. Kestra Advisory Services LLC boosted its stake in shares of Microchip Technology by 6.8% during the 3rd quarter. Kestra Advisory Services LLC now owns 24,050 shares of the semiconductor company's stock worth $1,870,000 after acquiring an additional 1,530 shares during the last quarter. Finally, Commonwealth Equity Services LLC boosted its stake in shares of Microchip Technology by 7.1% during the 3rd quarter. Commonwealth Equity Services LLC now owns 78,894 shares of the semiconductor company's stock worth $6,136,000 after acquiring an additional 5,247 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Analyst Ratings Changes

Several research firms recently weighed in on MCHP. Wells Fargo & Company lowered their target price on Microchip Technology from $80.00 to $70.00 and set an "equal weight" rating on the stock in a research report on Friday. TD Cowen reduced their price target on Microchip Technology from $90.00 to $75.00 and set a "hold" rating for the company in a research report on Monday, October 19th. BMO Capital Markets began coverage on Microchip Technology in a research note on Friday, August 21st. They issued an "outperform" rating and a $95.00 price objective on the stock. B. Riley Financial lowered their price objective on Microchip Technology from $98.00 to $85.00 and set a "buy" rating on the stock in a research report on Friday. Finally, Weiss Ratings upgraded Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Three equities research 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's stock. Based on data from MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average price target of $91.64.

Insider Activity at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by insiders.

Microchip Technology Price Performance

Shares of MCHP stock opened at $58.35 on Monday. The company has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a PEG ratio of 0.40 and a beta of 1.84. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91. The company's fifty day moving average price is $74.85 and its 200-day moving average price is $79.41. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.24 and a quick ratio of 1.33.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.03. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 14.96% and a return on equity of 20.32%. Microchip Technology's quarterly revenue was up 42.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.35 EPS. Sell-side analysts expect that Microchip Technology Incorporated will post 3.20 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Monday, November 23rd will be given a $0.4550 dividend. This represents a $1.82 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Monday, November 23rd. Microchip Technology's payout ratio is presently 137.88%.

Microchip Technology Company Profile

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