Microchip Technology Incorporated $MCHP Stake Raised by Natural Investments LLC

Key Points

• Natural Investments LLC increased its Microchip Technology stake by 3,410.6% in the second quarter, bringing its holdings to 119,359 shares valued at approximately $10.9 million. Institutional investors collectively own 91.51% of the company.
• Microchip reported quarterly earnings of $0.76 per share, exceeding estimates of $0.70, while revenue rose 38% year over year to $1.48 billion. The company declared a quarterly dividend of $0.455 per share, representing a 2.5% yield.
• MCHP shares opened at $71.41, below their 50- and 200-day moving averages, while analysts maintained a “Moderate Buy” consensus with an average price target of $98.67. Company insiders sold nearly $864,500 of stock over the past quarter.

Natural Investments LLC boosted its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 3,410.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 119,359 shares of the semiconductor company's stock after buying an additional 115,959 shares during the period. Microchip Technology makes up about 2.5% of Natural Investments LLC's portfolio, making the stock its 8th biggest holding. Natural Investments LLC's holdings in Microchip Technology were worth $10,886,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. EFG International AG bought a new position in shares of Microchip Technology during the 4th quarter valued at approximately $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology in the fourth quarter worth $29,000. Continuum Advisory LLC purchased a new stake in Microchip Technology during the second quarter valued at $30,000. Johnson Financial Group Inc. purchased a new stake in Microchip Technology during the second quarter valued at $31,000. Finally, Reflection Asset Management bought a new position in Microchip Technology during the fourth quarter valued at $33,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Trading Down 2.8%

Shares of MCHP opened at $71.41 on Wednesday. The company's fifty day simple moving average is $80.88 and its 200-day simple moving average is $81.33. The company has a market cap of $38.78 billion, a P/E ratio of 106.58, a P/E/G ratio of 0.51 and a beta of 1.75. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The company had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the firm posted $0.27 EPS. The firm's revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 3.16 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Monday, August 24th. Microchip Technology's dividend payout ratio is presently 271.64%.

Wall Street Analyst Weigh In

MCHP has been the subject of a number of recent research reports. Needham & Company LLC lifted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Citigroup lowered their price target on shares of Microchip Technology from $113.00 to $95.00 and set a "buy" rating for the company in a report on Friday, August 7th. Wells Fargo & Company dropped their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating for the company in a research report on Monday, July 20th. Susquehanna boosted their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $120.00 price objective on shares of Microchip Technology in a research note on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus price target of $98.67.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,112 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares of the company's stock, valued at $2,152,118.36. This represents a 12.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer owned 130,508 shares in the company, valued at approximately $12,727,140.16. The trade was a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 9,949 shares of company stock worth $864,493. Company insiders own 1.79% of the company's stock.

Microchip Technology 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.

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