Microchip Technology Incorporated $MCHP Shares Sold by Swiss Life Asset Management Ltd

Key Points

• Swiss Life Asset Management cut its Microchip Technology stake by 41.1% in the fourth quarter, selling 205,508 shares and leaving it with 294,121 shares valued at about $18.7 million.
• Microchip reported better-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion versus $1.26 billion expected. Revenue rose 35.1% year over year, and the company guided Q1 2027 EPS to $0.67-$0.71.
• Analysts have turned more bullish, with multiple firms raising price targets after the earnings beat. KeyBanc lifted its target to $135 and Barclays, Citigroup, JPMorgan, and Wells Fargo also increased theirs, while the consensus rating remains Moderate Buy.

Swiss Life Asset Management Ltd reduced its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 41.1% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 294,121 shares of the semiconductor company's stock after selling 205,508 shares during the period. Swiss Life Asset Management Ltd owned 0.05% of Microchip Technology worth $18,741,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Barrow Hanley Mewhinney & Strauss LLC raised its position 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 period. Holocene Advisors LP raised its position in Microchip Technology by 77.0% in the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after purchasing an additional 2,049,249 shares during the period. Rafferty Asset Management LLC raised its position in Microchip Technology by 41.0% in the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after purchasing an additional 1,803,945 shares during the period. Bank of America Corp DE raised its position 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 period. Finally, Ameriprise Financial Inc. raised its position in Microchip Technology by 255.7% in the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock valued at $150,271,000 after purchasing an additional 1,534,829 shares during the period. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Trading Down 0.1%

NASDAQ MCHP opened at $99.03 on Tuesday. The stock has a market capitalization of $53.59 billion, a P/E ratio of 471.59, a P/E/G ratio of 1.32 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 firm has a 50-day moving average price of $74.22 and a 200 day moving average price of $69.65. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm's revenue for the quarter was up 35.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities research analysts expect that Microchip Technology Incorporated will post 2.14 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.8%. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: KeyBanc raised its price target on Microchip Technology to $135 from $85 and kept an Overweight rating, citing strong fiscal Q4 results and Q1 guidance. KeyBanc Raises its Price Target on Microchip Technology (MCHP) to $135
• Positive Sentiment: Barclays raised its price target to $105 from $80, implying additional upside, though it maintained an Equal Weight rating.
• Positive Sentiment: Several other firms also lifted targets, including JPMorgan, Truist, Citigroup, and Wells Fargo, reinforcing a broadly bullish analyst tone around MCHP.
• Positive Sentiment: Recent commentary highlighted Microchip’s earnings beat, upbeat guidance, and renewed momentum, which have helped reset expectations and support the stock’s move higher.
• Neutral Sentiment: Short interest data showed 0 shares reported as short interest as of May 11, which does not currently indicate meaningful bearish positioning.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 416,581 shares of the firm's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer directly owned 9,495,805 shares of the company's stock, valued at $840,663,616.65. This trade represents a 4.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 526,552 shares of company stock worth $47,130,465. Company insiders own 1.94% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently weighed in on MCHP. Zacks Research lowered Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Wells Fargo & Company upped their price objective on Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research report on Friday. Barclays upped their price objective on Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Monday. Citigroup lifted their price target on Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a report on Friday. Finally, JPMorgan Chase & Co. upped their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average price target of $96.43.

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.

Want to see what other hedge funds are holding MCHP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microchip Technology Incorporated (NASDAQ:MCHP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.