Microchip Technology Incorporated $MCHP Stake Lifted by GAMMA Investing LLC

Key Points

• GAMMA Investing LLC has increased its stake in Microchip Technology by 85.8%, owning 18,436 shares valued at approximately $1.3 million at the end of Q2.
• Microchip Technology reported earnings per share of $0.27, exceeding analysts' expectations, despite a 13.3% decline in revenue year-over-year.
• The company recently paid a quarterly dividend of $0.455 per share, reflecting an annualized dividend yield of 2.8%.

GAMMA Investing LLC increased its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 85.8% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 18,436 shares of the semiconductor company's stock after purchasing an additional 8,514 shares during the period. GAMMA Investing LLC's holdings in Microchip Technology were worth $1,297,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Painted Porch Advisors LLC acquired a new position in shares of Microchip Technology during the 2nd quarter valued at $40,000. Park Avenue Securities LLC boosted its stake in Microchip Technology by 3.0% during the second quarter. Park Avenue Securities LLC now owns 13,069 shares of the semiconductor company's stock valued at $920,000 after buying an additional 383 shares in the last quarter. Oak Asset Management LLC grew its holdings in Microchip Technology by 1.0% during the second quarter. Oak Asset Management LLC now owns 27,812 shares of the semiconductor company's stock worth $1,957,000 after acquiring an additional 275 shares during the period. CX Institutional raised its position in Microchip Technology by 110.9% in the second quarter. CX Institutional now owns 6,756 shares of the semiconductor company's stock worth $475,000 after acquiring an additional 3,552 shares in the last quarter. Finally, Pinnacle Bancorp Inc. raised its holdings in shares of Microchip Technology by 18.9% in the 2nd quarter. Pinnacle Bancorp Inc. now owns 1,206 shares of the semiconductor company's stock worth $85,000 after purchasing an additional 192 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

Microchip Technology Stock Performance

MCHP opened at $65.40 on Tuesday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The company has a market cap of $35.30 billion, a PE ratio of -192.35, a price-to-earnings-growth ratio of 1.87 and a beta of 1.56. The stock has a 50-day moving average of $67.03 and a 200-day moving average of $59.94. Microchip Technology Incorporated has a 52-week low of $34.13 and a 52-week high of $81.64.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The firm's revenue was down 13.3% compared to the same quarter last year. During the same period last year, the business earned $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, equities research analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company 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 annualized dividend and a dividend 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 Upgrades and Downgrades

MCHP has been the topic of several recent research reports. Wells Fargo & Company assumed coverage on shares of Microchip Technology in a research report on Monday, September 15th. They issued an "equal weight" rating and a $60.00 price target on the stock. Zacks Research cut Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 18th. TD Cowen reduced their target price on Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a report on Friday, August 8th. Truist Financial increased their price target on Microchip Technology from $52.00 to $64.00 and gave the company a "hold" rating in a research report on Wednesday, June 18th. Finally, Citigroup boosted their price objective on Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a report on Monday, July 7th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, Microchip Technology has an average rating of "Moderate Buy" and an average price target of $75.75.

Insiders Place Their Bets

In related news, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction 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 transaction, the director owned 30,665 shares in the company, valued at $2,092,886.25. This trade represents a 24.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO James Eric Bjornholt sold 7,356 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the sale, the chief financial officer owned 30,010 shares of the company's stock, valued at $2,062,287.20. This trade represents a 19.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.94% of the company's stock.

Microchip Technology Company 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.

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