Microchip Technology Incorporated $MCHP Stock Holdings Increased by PensionDanmark Pensionsforsikringsaktieselskab

Key Points

• PensionDanmark increased its Microchip Technology stake by 21% in the second quarter, acquiring 22,390 additional shares and bringing its total holdings to 129,210 shares valued at $11.8 million. Institutional investors collectively own 91.51% of the company.
• Microchip exceeded quarterly expectations, reporting EPS of $0.76 and revenue of $1.48 billion, up 38% year over year. Its fiscal Q2 guidance of $0.91–$0.95 in EPS and approximately $1.6 billion in revenue also topped consensus estimates, supported by recovering demand and AI-related growth.
• Analysts maintain a generally positive view, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $98.85, although Truist lowered its target to $90 and kept a “Hold” rating. The company also declared a quarterly dividend of $0.455 per share.

PensionDanmark Pensionsforsikringsaktieselskab raised its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 21.0% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 129,210 shares of the semiconductor company's stock after buying an additional 22,390 shares during the quarter. PensionDanmark Pensionsforsikringsaktieselskab's holdings in Microchip Technology were worth $11,784,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. AQR Capital Management LLC lifted its stake in Microchip Technology by 51.3% during the first quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after purchasing an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after purchasing an additional 616 shares during the period. Cresset Asset Management LLC grew its holdings in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock worth $805,000 after buying an additional 589 shares in the last quarter. AXA S.A. grew its stake in shares of Microchip Technology by 21.3% in the second quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock worth $3,628,000 after purchasing an additional 9,043 shares in the last quarter. Finally, Treasurer of the State of North Carolina increased its stake in Microchip Technology by 1.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock valued at $17,348,000 after buying an additional 3,851 shares during the period. Institutional investors own 91.51% of the company's stock.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip's data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

Microchip Technology Price Performance

Shares of NASDAQ:MCHP opened at $84.69 on Friday. The company has a market capitalization of $45.99 billion, a PE ratio of 403.30, a price-to-earnings-growth ratio of 0.75 and a beta of 1.76. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The stock has a fifty day moving average of $87.14 and a 200-day moving average of $81.30. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.70 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company's quarterly revenue was up 38.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities analysts anticipate that Microchip Technology Incorporated will post 2.7 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be paid a $0.455 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.1%. Microchip Technology's dividend payout ratio (DPR) is currently 866.67%.

Insiders Place Their Bets

In other news, Director Matthew W. Chapman sold 3,000 shares of Microchip Technology stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the transaction, the director directly owned 17,665 shares of the company's stock, valued at $1,722,690.80. This trade represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO James Eric Bjornholt sold 3,667 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 26,750 shares of company stock worth $2,543,170. Company insiders own 1.79% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on MCHP shares. JPMorgan Chase & Co. increased their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a report on Friday, May 8th. UBS Group restated a "buy" rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a research report on Friday. Zacks Research raised Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Wall Street Zen upgraded Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Finally, Truist Financial dropped their price objective on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Friday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $98.85.

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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