Microchip Technology Incorporated $MCHP Shares Acquired by Castleark Management LLC

Key Points

• Castleark Management LLC increased its stake in Microchip Technology by 9.1% in the fourth quarter, buying 43,150 more shares and bringing its total holdings to 515,494 shares worth about $32.8 million.
• Wall Street analysts remain broadly positive on the stock, with a Moderate Buy consensus and a price target of $98.18 after several firms recently raised their targets.
• Microchip Technology reported strong quarterly results, beating EPS and revenue estimates, and the stock was trading near $95.24 with a dividend yield of 1.9%.

Castleark Management LLC lifted its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 9.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 515,494 shares of the semiconductor company's stock after buying an additional 43,150 shares during the quarter. Microchip Technology makes up approximately 1.0% of Castleark Management LLC's investment portfolio, making the stock its 24th largest position. Castleark Management LLC owned approximately 0.10% of Microchip Technology worth $32,847,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the business. MCF Advisors LLC raised its stake in Microchip Technology by 25.8% during the fourth quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 135 shares during the period. Millstone Evans Group LLC boosted its holdings in Microchip Technology by 23.7% in the 4th quarter. Millstone Evans Group LLC now owns 742 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 142 shares during the last quarter. Dorsey & Whitney Trust CO LLC grew its holdings in shares of Microchip Technology by 1.6% during the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 8,973 shares of the semiconductor company's stock worth $572,000 after purchasing an additional 143 shares during the period. Verdence Capital Advisors LLC grew its holdings in shares of Microchip Technology by 2.2% during the 4th quarter. Verdence Capital Advisors LLC now owns 7,120 shares of the semiconductor company's stock worth $454,000 after purchasing an additional 150 shares during the period. Finally, Fiduciary Family Office LLC grew its holdings in shares of Microchip Technology by 4.4% during the 4th quarter. Fiduciary Family Office LLC now owns 3,567 shares of the semiconductor company's stock worth $227,000 after purchasing an additional 151 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. 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. Needham & Company LLC increased their price target on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. UBS Group reiterated a "buy" rating on shares of Microchip Technology in a report on Tuesday, June 2nd. JPMorgan Chase & Co. increased their price target on Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Finally, Barclays raised their target price on Microchip Technology from $80.00 to $105.00 and gave the company 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 given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.18.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $95.24 on Friday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The firm has a market capitalization of $51.63 billion, a PE ratio of 453.55, a price-to-earnings-growth ratio of 0.98 and a beta of 1.73. The stock's 50-day simple moving average is $87.85 and its 200-day simple moving average is $75.61.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 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 analyst estimates of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm's revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts forecast that Microchip Technology Incorporated will post 2.58 EPS for the current fiscal 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 paid a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Insider Buying and Selling

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the transaction, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 553,302 shares of company stock valued at $49,673,635. Company 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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