Microchip Technology Incorporated $MCHP Shares Sold by Dodge & Cox

Key Points

• Dodge & Cox trimmed its Microchip stake by 2% in Q3, selling 127,936 shares and ending the quarter with 6,211,864 shares (about 1.15% ownership) valued at $398.9 million.
• CEO Steve Sanghi sold 98,814 shares on January 28 for roughly $7.96 million, leaving company insiders with about 1.94% ownership.
• Microchip beat Q results with $0.44 EPS (by $0.01) and $1.19B revenue (up 15.6% YoY), announced a $0.455 quarterly dividend (annual $1.82, ~2.9% yield), but still shows a negative net margin and a negative dividend payout ratio.

Dodge & Cox cut its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 2.0% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,211,864 shares of the semiconductor company's stock after selling 127,936 shares during the period. Dodge & Cox owned 1.15% of Microchip Technology worth $398,926,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in MCHP. Winnow Wealth LLC acquired a new stake in Microchip Technology during the 3rd quarter worth about $25,000. Root Financial Partners LLC purchased a new stake in Microchip Technology in the 3rd quarter worth approximately $28,000. Salomon & Ludwin LLC boosted its holdings in Microchip Technology by 219.3% during the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company's stock worth $32,000 after buying an additional 329 shares in the last quarter. Quent Capital LLC purchased a new stake in shares of Microchip Technology during the 3rd quarter worth about $32,000. Finally, E Fund Management Hong Kong Co. Ltd. grew its holdings in Microchip Technology by 106.8% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 267 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Stock Down 1.3%

Shares of NASDAQ:MCHP opened at $61.94 on Friday. The firm has a market capitalization of $33.52 billion, a PE ratio of -213.59, a price-to-earnings-growth ratio of 1.58 and a beta of 1.45. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $83.35. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The firm's 50-day moving average is $74.21 and its two-hundred day moving average is $66.62.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. The company had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The firm's revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were given a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 2.9%. Microchip Technology's dividend payout ratio (DPR) is currently -627.59%.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the business's stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the completion of the transaction, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. The trade was a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.94% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Rosenblatt Securities upped their price objective on shares of Microchip Technology from $80.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. Wells Fargo & Company increased their price objective on Microchip Technology from $68.00 to $70.00 and gave the company an "equal weight" rating in a research note on Friday, February 6th. BNP Paribas Exane raised shares of Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 target price on the stock in a research note on Thursday, January 22nd. Wolfe Research set a $85.00 price target on Microchip Technology in a research report on Tuesday, January 6th. Finally, Argus raised shares of Microchip Technology to a "strong-buy" rating in a report on Monday, February 9th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average target price of $86.00.

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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