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

Key Points

• Rafferty Asset Management LLC reduced its stake in Microchip Technology by 2.3% during the 1st quarter, now holding approximately 4.4 million shares valued at about $213 million.
• Microchip Technology reported a Q1 EPS of $0.27, surpassing expectations of $0.24, but with a revenue decline of 13.3% year-over-year, totaling $1.08 billion.
• The company declared a quarterly dividend of $0.455 per share, set to be paid on September 5th, with a yield of 2.7%.

Rafferty Asset Management LLC decreased its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 2.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,399,817 shares of the semiconductor company's stock after selling 105,824 shares during the period. Microchip Technology comprises 0.9% of Rafferty Asset Management LLC's investment portfolio, making the stock its 24th biggest position. Rafferty Asset Management LLC owned approximately 0.82% of Microchip Technology worth $212,995,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Garde Capital Inc. purchased a new stake in Microchip Technology during the first quarter worth about $30,000. Orion Capital Management LLC purchased a new position in shares of Microchip Technology in the fourth quarter valued at approximately $41,000. Byrne Asset Management LLC acquired a new position in shares of Microchip Technology in the first quarter valued at approximately $41,000. GW&K Investment Management LLC grew its holdings in shares of Microchip Technology by 161.0% in the first quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after purchasing an additional 578 shares in the last quarter. Finally, American National Bank & Trust purchased a new stake in Microchip Technology during the 1st quarter worth approximately $48,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have commented on MCHP. UBS Group boosted their price target on shares of Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Bank of America upgraded Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 price target on the stock in a report on Friday, May 9th. Wall Street Zen raised Microchip Technology from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Truist Financial lifted their price objective on Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research note on Wednesday, June 18th. Finally, Rosenblatt Securities boosted their price objective on Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, May 30th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $76.58.

Insider Transactions at Microchip Technology

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

Microchip Technology Stock Down 2.1%

Microchip Technology stock traded down $1.40 during mid-day trading on Thursday, hitting $65.25. The company had a trading volume of 13,996,951 shares, compared to its average volume of 9,616,931. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. Microchip Technology Incorporated has a 1 year low of $34.13 and a 1 year high of $82.65. The business has a fifty day moving average of $69.50 and a 200 day moving average of $59.17. The stock has a market cap of $35.21 billion, a price-to-earnings ratio of -191.91, a PEG ratio of 1.93 and a beta of 1.55.

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, beating the consensus estimate of $0.24 by $0.03. The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The company's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, sell-side analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be issued a dividend of $0.455 per share. The ex-dividend date of this dividend is 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 presently -535.29%.

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.