Microchip Technology Incorporated $MCHP Stock Holdings Increased by Fenimore Asset Management Inc

Key Points

• Fenimore Asset Management Inc has increased its stake in Microchip Technology by 6.1% during the 2nd quarter, now owning approximately 1.4 million shares valued at $98.5 million.
• Wall Street analysts have mixed sentiments, with price targets ranging from $60.00 to $90.00, reflecting a consensus rating of "Moderate Buy" with an average target of $75.75.
• Microchip Technology recently declared a quarterly dividend of $0.455, resulting in an annualized yield of 2.7%, despite a negative dividend payout ratio of -535.29%.

Fenimore Asset Management Inc boosted its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 6.1% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,399,969 shares of the semiconductor company's stock after purchasing an additional 80,809 shares during the period. Microchip Technology makes up approximately 2.0% of Fenimore Asset Management Inc's holdings, making the stock its 22nd biggest position. Fenimore Asset Management Inc owned about 0.26% of Microchip Technology worth $98,516,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the business. Garde Capital Inc. acquired a new position in shares of Microchip Technology in the 1st quarter worth $30,000. MCF Advisors LLC boosted its position in shares of Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 321 shares during the period. Carderock Capital Management Inc. acquired a new position in shares of Microchip Technology in the 2nd quarter valued at $39,000. WPG Advisers LLC purchased a new position in shares of Microchip Technology in the first quarter worth approximately $40,000. Finally, Painted Porch Advisors LLC acquired a new stake in shares of Microchip Technology during the second quarter valued at approximately $40,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Stifel Nicolaus lifted their price objective on shares of Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. TD Cowen lowered their price target on Microchip Technology from $75.00 to $60.00 and set a "hold" rating on the stock in a report on Friday, August 8th. Susquehanna upped their price target on Microchip Technology from $60.00 to $90.00 and gave the company a "positive" rating in a research report on Tuesday, July 22nd. Cantor Fitzgerald started coverage on Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 price objective for the company. Finally, Wall Street Zen upgraded Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $75.75.

Insider Activity

In other news, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the completion of the transaction, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. This represents a 24.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 7,356 shares of the 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 completion of the sale, the chief financial officer owned 30,010 shares of the company's stock, valued at approximately $2,062,287.20. The trade was a 19.69% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.94% of the company's stock.

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $66.54 on Monday. The company has a market cap of $35.91 billion, a price-to-earnings ratio of -195.71, a PEG ratio of 1.91 and a beta of 1.55. The business has a 50 day moving average price of $65.67 and a 200 day moving average price of $60.69. 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 Incorporated has a twelve month low of $34.13 and a twelve month high of $79.53.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate 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 company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. During the same period in the previous year, the business posted $0.53 EPS. The company's revenue for the quarter was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Research analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.7%. The ex-dividend date was Friday, August 22nd. Microchip Technology's dividend payout ratio (DPR) is currently -535.29%.

About Microchip Technology

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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