Microchip Technology Incorporated $MCHP Shares Sold by Madison Asset Management LLC

Key Points

• Madison Asset Management sharply reduced its Microchip Technology stake by 89.7% in the fourth quarter, selling more than 1.4 million shares and ending with 163,303 shares valued at about $10.4 million.
• Insiders also sold shares: CEO Steve Sanghi sold 416,581 shares in April for roughly $36.9 million, and insiders sold 526,552 shares total in the last quarter.
• Microchip Technology beat quarterly earnings expectations, reporting $0.57 EPS on revenue of $1.31 billion, while analysts currently maintain a Moderate Buy consensus with a target price of $97.52.

Madison Asset Management LLC decreased its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 89.7% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 163,303 shares of the semiconductor company's stock after selling 1,425,629 shares during the period. Madison Asset Management LLC's holdings in Microchip Technology were worth $10,406,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Microchip Technology by 2.0% in the fourth quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock valued at $4,683,824,000 after purchasing an additional 1,430,781 shares during the last quarter. Boston Partners grew its holdings in Microchip Technology by 9.5% in the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock valued at $1,044,024,000 after purchasing an additional 1,406,885 shares during the last quarter. Victory Capital Management Inc. grew its holdings in Microchip Technology by 11.3% in the third quarter. Victory Capital Management Inc. now owns 12,006,088 shares of the semiconductor company's stock valued at $806,821,000 after purchasing an additional 1,215,939 shares during the last quarter. Bank of America Corp DE grew its holdings in Microchip Technology by 18.8% in the third 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 during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its holdings 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 purchasing an additional 2,257,932 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, CEO Steve Sanghi sold 416,581 shares of the stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. This represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 526,552 shares of company stock worth $47,130,465 in the last quarter. Corporate insiders own 1.94% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on MCHP. Mizuho upped their target price on Microchip Technology from $83.00 to $90.00 and gave the company an "outperform" rating in a report on Friday, February 6th. Argus upgraded Microchip Technology to a "strong-buy" rating in a research report on Monday, February 9th. Stifel Nicolaus set a $90.00 price objective on Microchip Technology in a research note on Friday, February 6th. Weiss Ratings lowered Microchip Technology from a "hold (c-)" rating to a "sell (d+)" rating in a research note 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. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $97.52.

Microchip Technology Stock Down 1.0%

MCHP opened at $96.71 on Thursday. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The firm has a market cap of $52.33 billion, a P/E ratio of 460.55, a PEG ratio of 1.20 and a beta of 1.75. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The business's fifty day simple moving average is $75.13 and its 200 day simple moving average is $70.10.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The business's revenue for the quarter was up 35.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, equities research analysts anticipate that Microchip Technology Incorporated will post 2.21 EPS for the current fiscal year.

Microchip Technology Announces Dividend

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

Microchip Technology Company 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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