Microchip Technology Incorporated $MCHP Stake Lifted by Alps Advisors Inc.

Key Points

• Alps Advisors increased its Microchip Technology stake by 35% in the third quarter, adding 99,203 shares to hold 382,924 shares worth about $29.8 million.
• Microchip reported quarterly EPS of $0.97, beating the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year.
• The company declared a quarterly dividend of $0.455 per share. However, its next-quarter outlook was reportedly below consensus, and several analysts lowered price targets after the results.

Alps Advisors Inc. increased its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.0% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 382,924 shares of the semiconductor company's stock after buying an additional 99,203 shares during the period. Alps Advisors Inc. owned 0.07% of Microchip Technology worth $29,780,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Ashton Thomas Private Wealth LLC raised its stake in Microchip Technology by 10.0% in the 3rd quarter. Ashton Thomas Private Wealth LLC now owns 2,750 shares of the semiconductor company's stock worth $214,000 after acquiring an additional 250 shares during the last quarter. Heritage Family Offices LLP acquired a new stake in shares of Microchip Technology in the third quarter worth $47,000. Alta Advisers Ltd increased its holdings in Microchip Technology by 75.2% during the 3rd quarter. Alta Advisers Ltd now owns 3,866 shares of the semiconductor company's stock valued at $301,000 after purchasing an additional 1,659 shares in the last quarter. Argonautica Private Wealth Management Inc. boosted its holdings in Microchip Technology by 12.9% during the third quarter. Argonautica Private Wealth Management Inc. now owns 6,774 shares of the semiconductor company's stock worth $527,000 after purchasing an additional 774 shares during the last quarter. Finally, Kestra Advisory Services LLC grew its holdings in shares of Microchip Technology by 6.8% during the 3rd quarter. Kestra Advisory Services LLC now owns 24,050 shares of the semiconductor company's stock worth $1,870,000 after purchasing an additional 1,530 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $58.35 on Friday. The stock's 50-day simple moving average is $74.85 and its 200-day simple moving average is $79.41. The company has a market capitalization of $31.68 billion, a price-to-earnings ratio of 44.20, a PEG ratio of 0.52 and a beta of 1.84. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.03. The firm had revenue of $1.62 billion for the quarter, compared to analysts' expectations of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company's revenue was up 42.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 3.20 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Investors of record on Monday, November 23rd will be issued a dividend of $0.4550 per share. The ex-dividend date is Monday, November 23rd. This represents a $1.82 annualized dividend and a yield of 3.1%. Microchip Technology's payout ratio is 271.64%.

Insider Transactions at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total transaction of $309,715.84. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is currently owned by corporate insiders.

Microchip Technology News Summary

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

• Positive Sentiment: Fiscal Q2 EPS was $0.97 versus the $0.94 consensus, while revenue of $1.62 billion topped estimates and rose 42.2% year over year. Reports cited recovering industrial and data-center demand and improving margins as growth drivers. Zacks earnings report
• Positive Sentiment: Microchip declared a quarterly dividend of $0.455 per share, equivalent to $1.82 annually and a reported yield of about 3.2%. The dividend may appeal to income-focused investors.
• Neutral Sentiment: Several analysts still rate MCHP Buy or Overweight, and their revised targets remain above the cited $58.35 share price. However, the target reductions signal more cautious expectations.
• Negative Sentiment: Management’s fiscal Q3 outlook is a key concern: revenue is forecast to range from 3% below to 1% above Q2, with non-GAAP EPS of $0.87–$0.95. The midpoint was reported below consensus; supply constraints and rising costs could limit near-term growth. Benzinga analyst coverage
• Negative Sentiment: Analysts cut targets after the results, including Truist to $62 from $90 and Evercore ISI to $75 from $117. Citigroup lowered its target to $75 from $95 but kept a Buy rating; the broader reset in expectations may pressure shares despite generally higher remaining targets. Truist analyst recommendations Evercore ISI target update

Analyst Ratings Changes

MCHP has been the subject of several research reports. Susquehanna cut their target price on shares of Microchip Technology from $120.00 to $100.00 and set a "positive" rating for the company in a research report on Friday. Jefferies Financial Group cut their target price on shares of Microchip Technology from $100.00 to $85.00 and set a "buy" rating for the company in a research note on Friday. BMO Capital Markets started coverage on shares of Microchip Technology in a research report on Friday, August 21st. They set an "outperform" rating and a $95.00 price objective on the stock. UBS Group reissued a "buy" rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Finally, Wall Street Zen downgraded Microchip Technology from a "buy" rating to a "hold" rating in a report on Saturday. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus target price of $91.64.

Microchip Technology Profile

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