Microchip Technology Incorporated $MCHP Shares Sold by QRG Capital Management Inc.

Key Points

• QRG Capital Management Inc. has reduced its stake in Microchip Technology ($MCHP) by 11.0%, owning 83,589 shares worth approximately $5.88 million post-sale.
• The company recently reported quarterly earnings of $0.27 EPS, surpassing analysts' expectations, despite a 13.3% year-over-year revenue decline to $1.08 billion.
• Microchip Technology declared a quarterly dividend of $0.455 per share, representing an annualized yield of 2.7%, although the payout ratio stands at a concerning -535.29%.

QRG Capital Management Inc. trimmed its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 11.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 83,589 shares of the semiconductor company's stock after selling 10,288 shares during the period. QRG Capital Management Inc.'s holdings in Microchip Technology were worth $5,882,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. MCF Advisors LLC grew its holdings in Microchip Technology by 211.2% during the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 321 shares in the last quarter. Carderock Capital Management Inc. acquired a new position in Microchip Technology during the 2nd quarter worth $39,000. Painted Porch Advisors LLC acquired a new stake in shares of Microchip Technology in the 2nd quarter valued at about $40,000. Garde Capital Inc. bought a new position in shares of Microchip Technology during the first quarter worth about $30,000. Finally, WPG Advisers LLC bought a new position in shares of Microchip Technology during the first quarter worth about $40,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Stock Up 0.6%

MCHP stock opened at $66.54 on Monday. Microchip Technology Incorporated has a 52 week low of $34.13 and a 52 week high of $79.53. The company has a market capitalization of $35.91 billion, a price-to-earnings ratio of -195.71, a price-to-earnings-growth ratio of 1.91 and a beta of 1.55. The firm's 50-day moving average is $65.67 and its two-hundred day moving average is $60.69. 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 released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. During the same period in the previous year, the firm earned $0.53 EPS. Microchip Technology's revenue was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Friday, August 22nd. Microchip Technology's payout ratio is -535.29%.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 7,356 shares of the business'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 sale, the chief financial officer directly owned 30,010 shares in the company, valued at $2,062,287.20. The trade was a 19.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Matthew W. Chapman sold 10,000 shares of the business'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 transaction of $682,500.00. Following the completion of the sale, the director owned 30,665 shares in the company, valued at $2,092,886.25. The trade was a 24.59% 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.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MCHP. Stifel Nicolaus increased their price target on shares of Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Mizuho increased their price target on shares of Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Wells Fargo & Company began coverage on shares of Microchip Technology in a research report on Monday, September 15th. They set an "equal weight" rating and a $60.00 price target on the stock. Susquehanna increased their price target on shares of Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Finally, KeyCorp increased their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $75.75.

About Microchip Technology

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.

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