Microchip Technology Incorporated $MCHP Shares Acquired by Royal Bank of Canada

Key Points

• Royal Bank of Canada increased its holdings in Microchip Technology by 22.0%, owning approximately 3.48 million shares valued at $168.6 million as of its latest SEC filing.
• The company recently announced a quarterly dividend of $0.455 payable to investors, translating to an annual yield of 2.8%.
• Microchip Technology's recent earnings report showed an EPS of $0.27, beating analysts' expectations, although year-over-year revenue declined by 13.3%.

Royal Bank of Canada grew its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 22.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,482,392 shares of the semiconductor company's stock after buying an additional 626,986 shares during the period. Royal Bank of Canada owned 0.65% of Microchip Technology worth $168,583,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Garde Capital Inc. acquired a new position in Microchip Technology in the first quarter valued at $30,000. WPG Advisers LLC acquired a new stake in shares of Microchip Technology during the first quarter worth about $40,000. Orion Capital Management LLC purchased a new stake in shares of Microchip Technology in the 4th quarter valued at about $41,000. Byrne Asset Management LLC acquired a new stake in shares of Microchip Technology in the 1st quarter valued at about $41,000. Finally, GW&K Investment Management LLC grew its stake in Microchip Technology by 161.0% during the 1st quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock worth $45,000 after buying an additional 578 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Performance

Shares of NASDAQ:MCHP traded up $1.49 during midday trading on Friday, hitting $65.92. The stock had a trading volume of 7,765,182 shares, compared to its average volume of 8,122,999. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $81.64. The stock has a 50 day moving average price of $68.82 and a two-hundred day moving average price of $59.50. The company has a market capitalization of $35.58 billion, a PE ratio of -193.88, a P/E/G ratio of 1.89 and a beta of 1.56. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The business had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period in the prior year, the business posted $0.53 EPS. The company's revenue for the quarter was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were paid a $0.455 dividend. The ex-dividend date was Friday, August 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. Microchip Technology's dividend payout ratio (DPR) is -535.29%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Stifel Nicolaus increased their price objective on Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a report on Friday, July 18th. Rosenblatt Securities increased their price target on shares of Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. Mizuho lifted their price objective on shares of Microchip Technology from $78.00 to $85.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Citigroup upped their target price on shares of Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a report on Monday, July 7th. Finally, KeyCorp raised their price target on Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $76.58.

Insider Transactions at Microchip Technology

In related news, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.25, for a total value of $682,500.00. Following the sale, the director owned 30,665 shares in the company, valued at $2,092,886.25. This represents a 24.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 7,356 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the transaction, the chief financial officer directly owned 30,010 shares of the company's stock, valued at $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by insiders.

Microchip Technology Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.