Reinhart Partners LLC. Trims Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Reinhart Partners LLC reduced its stake in Microchip Technology by 5.5%, now holding 128,381 shares, valued at approximately $9,034,000.
• Microchip Technology's recent quarterly earnings report showed earnings per share of $0.27, beating estimates, but revenue was down 13.3% year-over-year.
• The company declared a quarterly dividend of $0.455, representing an annual yield of 2.8%, despite a negative dividend payout ratio.

Reinhart Partners LLC. trimmed its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 5.5% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 128,381 shares of the semiconductor company's stock after selling 7,441 shares during the quarter. Reinhart Partners LLC.'s holdings in Microchip Technology were worth $9,034,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in MCHP. Garde Capital Inc. purchased a new position in shares of Microchip Technology in the 1st quarter valued at about $30,000. WPG Advisers LLC purchased a new position in shares of Microchip Technology in the 1st quarter valued at about $40,000. Orion Capital Management LLC purchased a new position in shares of Microchip Technology in the 4th quarter valued at about $41,000. Byrne Asset Management LLC purchased a new position in shares of Microchip Technology in the 1st quarter valued at about $41,000. Finally, GW&K Investment Management LLC boosted its stake in shares of Microchip Technology by 161.0% in the 1st quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after buying an additional 578 shares during the period. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Price Performance

MCHP stock traded down $1.11 on Friday, reaching $65.15. 13,346,423 shares of the company's stock were exchanged, compared to its average volume of 7,494,503. The stock has a fifty day moving average of $67.21 and a 200-day moving average of $59.89. Microchip Technology Incorporated has a twelve month low of $34.13 and a twelve month high of $81.64. The firm has a market cap of $35.16 billion, a PE ratio of -191.62, a P/E/G ratio of 1.87 and a beta of 1.56. 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 (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.05 billion. During the same quarter in the prior year, the company posted $0.53 earnings per share. Microchip Technology's quarterly 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. As a group, equities analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's dividend payout ratio is currently -535.29%.

Analyst Ratings Changes

Several brokerages have recently issued reports on MCHP. KeyCorp lifted their price objective on Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Rosenblatt Securities raised their target price on Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, May 30th. Piper Sandler raised their target price on Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. UBS Group raised their target price on Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Finally, Stifel Nicolaus raised their target price on Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and a consensus price target of $75.75.

Insiders Place Their Bets

In other Microchip Technology news, Director Matthew W. Chapman sold 10,000 shares of the business's stock in a transaction 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 sale, the director directly owned 30,665 shares in the company, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO James Eric Bjornholt sold 7,356 shares of the business's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $68.72, for a total value of $505,504.32. Following the sale, the chief financial officer owned 30,010 shares in the company, valued at approximately $2,062,287.20. The trade was a 19.69% 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.

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.