Microchip Technology Incorporated $MCHP Shares Sold by Fenimore Asset Management Inc

Key Points

• Fenimore Asset Management reduced its Microchip Technology stake by 1.1%, selling 15,388 shares and retaining 1.37 million shares valued at approximately $106.3 million. Institutional investors collectively own 91.51% of MCHP.
• Microchip shares fell 3.2% to $75.52, while the company’s latest quarterly results exceeded expectations: EPS was $0.76 versus a $0.70 consensus estimate, and revenue rose 38% year over year to $1.48 billion.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.67, although several firms recently lowered their targets. The company also declared a quarterly dividend of $0.455 per share, representing a 2.4% annualized yield.

Fenimore Asset Management Inc reduced its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 1.1% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,366,210 shares of the semiconductor company's stock after selling 15,388 shares during the period. Microchip Technology makes up approximately 2.3% of Fenimore Asset Management Inc's portfolio, making the stock its 15th biggest position. Fenimore Asset Management Inc owned about 0.25% of Microchip Technology worth $106,250,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently bought and sold shares of MCHP. Avidian Wealth Enterprises LLC increased its position in shares of Microchip Technology by 6.2% during the third quarter. Avidian Wealth Enterprises LLC now owns 3,937 shares of the semiconductor company's stock valued at $306,000 after acquiring an additional 230 shares during the last quarter. Canandaigua National Trust Co of Florida acquired a new position in shares of Microchip Technology in the 3rd quarter worth approximately $376,000. Private Capital Advisors Inc. purchased a new position in shares of Microchip Technology during the 3rd quarter worth approximately $21,230,000. Ridgewood Investments LLC boosted its position in shares of Microchip Technology by 12.5% during the 3rd quarter. Ridgewood Investments LLC now owns 12,980 shares of the semiconductor company's stock worth $1,009,000 after purchasing an additional 1,441 shares during the period. Finally, CX Institutional increased its holdings in Microchip Technology by 1.7% in the 3rd quarter. CX Institutional now owns 11,944 shares of the semiconductor company's stock valued at $929,000 after purchasing an additional 203 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Insiders Place Their Bets

In related news, CFO James Bjornholt sold 4,112 shares of Microchip Technology 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 owned 28,573 shares in the company, valued at $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by company insiders.

Microchip Technology Stock Down 3.2%

Shares of NASDAQ MCHP traded down $2.50 during mid-day trading on Thursday, hitting $75.52. The company had a trading volume of 10,130,127 shares, compared to its average volume of 10,093,008. The company has a market capitalization of $41.01 billion, a PE ratio of 112.72, a price-to-earnings-growth ratio of 0.57 and a beta of 1.77. The business's 50-day simple moving average is $76.02 and its 200 day simple moving average is $82.07. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, topping the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.Microchip Technology's revenue for the quarter was up 38.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, analysts predict that Microchip Technology Incorporated will post 3.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were issued a $0.4550 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.82 annualized dividend and a yield of 2.4%. Microchip Technology's dividend payout ratio (DPR) is 271.64%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MCHP. Truist Financial decreased their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Friday, August 7th. TD Cowen dropped their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a research note on Monday, July 13th. Rosenblatt Securities reissued a "buy" rating and set a $120.00 target price on shares of Microchip Technology in a research note on Friday, August 7th. Zacks Research cut Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Wells Fargo & Company dropped their target price on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating for the company in a research report on Monday, July 20th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $98.67.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company's product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.

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