Microchip Technology Incorporated $MCHP Shares Purchased by Aberdeen Group plc

Key Points

• Aberdeen Group increased its Microchip Technology stake by 403.4% in the third quarter, adding about 1.86 million shares to hold 2.32 million shares valued at roughly $180 million.
• Institutional investors own 91.51% of the stock, with several other firms also adding or initiating positions.
• Microchip beat quarterly earnings and revenue estimates, while analysts’ average rating is “Moderate Buy” with a $90.18 price target; several firms recently lowered their targets.

Aberdeen Group plc lifted its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 403.4% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 2,316,355 shares of the semiconductor company's stock after purchasing an additional 1,856,181 shares during the period. Aberdeen Group plc owned 0.43% of Microchip Technology worth $180,143,000 as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in MCHP. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Microchip Technology during the 2nd quarter worth about $537,423,000. Legal & General Group Plc acquired a new stake in Microchip Technology during the 2nd quarter worth $312,597,000. Van ECK Associates Corp raised its position in shares of Microchip Technology by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company's stock valued at $750,102,000 after acquiring an additional 1,272,838 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Microchip Technology during the 3rd quarter valued at $94,304,000. Finally, Pictet Asset Management Holding SA raised its position in shares of Microchip Technology by 30.7% in the 3rd quarter. Pictet Asset Management Holding SA now owns 4,881,363 shares of the semiconductor company's stock valued at $379,661,000 after acquiring an additional 1,145,500 shares during the period. 91.51% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. TD Cowen reduced their target price on shares of Microchip Technology from $90.00 to $75.00 and set a "hold" rating for the company in a research note on Monday, October 19th. BMO Capital Markets started coverage on shares of Microchip Technology in a research note on Friday, August 21st. They issued an "outperform" rating and a $95.00 price target for the company. Wells Fargo & Company decreased their price target on shares of Microchip Technology from $80.00 to $70.00 and set an "equal weight" rating on the stock in a research note on Friday, November 6th. Morgan Stanley dropped their price objective on Microchip Technology from $103.00 to $72.00 and set an "equal weight" rating for the company in a report on Monday, November 9th. Finally, KeyCorp lowered their price target on shares of Microchip Technology from $135.00 to $120.00 and set an "overweight" rating for the company in a report on Friday, November 6th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and an average price target of $90.18.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by corporate insiders.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $61.68 on Friday. The stock has a market capitalization of $33.57 billion, a P/E ratio of 46.73, a PEG ratio of 0.70 and a beta of 1.84. The company has a current ratio of 2.24, a quick ratio of 1.33 and a debt-to-equity ratio of 0.83. The firm's 50 day moving average is $73.73 and its 200 day moving average is $79.07. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.94 by $0.03. Microchip Technology had a net margin of 14.96% and a return on equity of 20.32%. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same period in the previous year, the business earned $0.35 EPS. Microchip Technology's revenue was up 42.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Microchip Technology Incorporated will post 3.19 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Monday, November 23rd will be given a dividend of $0.4550 per share. The ex-dividend date is Monday, November 23rd. This represents a $1.82 annualized dividend and a dividend yield of 3.0%. Microchip Technology's dividend payout ratio is currently 137.88%.

About Microchip Technology

Microchip Technology is a semiconductor company that develops and supplies components and systems for embedded control and connected applications. Its products include microcontrollers, microprocessors, analog and power-management devices, field-programmable gate arrays, timing products, and connectivity and security solutions. The company's products are used in a range of markets, including automotive, industrial, communications, data center, consumer, and aerospace and defense. Microchip also provides development tools, software, and technical support to help customers design and build electronic systems.

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