Microchip Technology Incorporated $MCHP Shares Purchased by Geode Capital Management LLC

Key Points

• Geode Capital Management increased its stake in Microchip Technology by 1.4% in the fourth quarter, adding 213,188 shares to bring its total holding to 15.4 million shares worth about $977.6 million.
• Wall Street analysts remain largely bullish on MCHP, with several firms raising price targets to as high as $120; the stock currently carries a consensus rating of Moderate Buy.
• Microchip reported stronger-than-expected quarterly results, posting $0.57 EPS on revenue of $1.31 billion, and it also announced a quarterly dividend of $0.455 per share.

Geode Capital Management LLC lifted its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 1.4% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,394,985 shares of the semiconductor company's stock after acquiring an additional 213,188 shares during the quarter. Geode Capital Management LLC owned about 2.85% of Microchip Technology worth $977,638,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently modified their holdings of MCHP. Barrow Hanley Mewhinney & Strauss LLC grew its position in Microchip Technology by 25.7% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after acquiring an additional 2,257,932 shares in the last quarter. Holocene Advisors LP increased its position in shares of Microchip Technology by 77.0% during the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock worth $302,447,000 after acquiring an additional 2,049,249 shares during the last quarter. Rafferty Asset Management LLC grew its stake in Microchip Technology by 41.0% during the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after purchasing an additional 1,803,945 shares in the last quarter. Bank of America Corp DE raised its position in shares of Microchip Technology by 18.8% in the 3rd quarter. Bank of America Corp DE now owns 11,419,944 shares of the semiconductor company's stock valued at $733,389,000 after purchasing an additional 1,803,831 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its stake in shares of Microchip Technology by 255.7% in the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock worth $150,271,000 after buying an additional 1,534,829 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on MCHP shares. Rosenblatt Securities increased their price target on shares of Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Citigroup boosted their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Needham & Company LLC increased their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Susquehanna upped their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. Finally, Wall Street Zen raised Microchip Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $97.52.

Insiders Place Their Bets

In other news, CEO Steve Sanghi sold 76,469 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the transaction, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew W. Chapman sold 3,000 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director directly owned 17,665 shares in the company, valued at approximately $1,722,690.80. The trade was a 14.52% 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 548,302 shares of company stock valued at $49,186,035. 1.94% of the stock is owned by insiders.

Microchip Technology Stock Down 1.4%

MCHP stock opened at $94.65 on Friday. The firm has a market cap of $51.31 billion, a PE ratio of 450.74, a P/E/G ratio of 1.01 and a beta of 1.75. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The firm has a 50 day simple moving average of $82.04 and a 200 day simple moving average of $72.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results 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. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the previous year, the business posted $0.11 earnings per share. The firm's quarterly revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities research analysts forecast that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology's payout ratio is currently 866.67%.

Microchip Technology 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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