Microchip Technology Incorporated $MCHP Stock Holdings Lessened by Edgestream Partners L.P.

Key Points

• Edgestream Partners cut its Microchip Technology stake by 69.6% in the first quarter, selling 22,215 shares and retaining 9,720 shares valued at approximately $628,000. Hedge funds and institutional investors collectively own 91.51% of MCHP.
• Microchip exceeded quarterly expectations with $0.57 in EPS versus the $0.50 consensus and $1.31 billion in revenue, up 35.1% year over year. The company provided Q1 fiscal 2027 EPS guidance of $0.67 to $0.71.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $99.76, while the company maintains a $0.455 quarterly dividend, or a 2.3% annualized yield.

Edgestream Partners L.P. reduced its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 69.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 9,720 shares of the semiconductor company's stock after selling 22,215 shares during the quarter. Edgestream Partners L.P.'s holdings in Microchip Technology were worth $628,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in MCHP. EFG International AG purchased a new stake in Microchip Technology in the 4th quarter worth approximately $29,000. Miller Capital Partners Inc. purchased a new position in shares of Microchip Technology during the 4th quarter valued at $29,000. Reflection Asset Management purchased a new position in shares of Microchip Technology during the 4th quarter valued at $33,000. Garton & Associates Financial Advisors LLC acquired a new position in shares of Microchip Technology in the fourth quarter worth $33,000. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 513 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Up 7.2%

MCHP stock opened at $80.67 on Wednesday. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a fifty day simple moving average of $88.15 and a 200 day simple moving average of $81.26. The firm has a market cap of $43.80 billion, a PE ratio of 384.16, a PEG ratio of 0.76 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the business posted $0.11 earnings per share. The business's quarterly revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Sell-side analysts anticipate that Microchip Technology Incorporated will post 2.7 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. Microchip Technology's dividend payout ratio is currently 866.67%.

Insider Activity

In related news, CFO James Eric Bjornholt sold 3,667 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $93.44, for a total value of $467,200.00. Following the sale, the chief operating officer directly owned 135,508 shares of the company's stock, valued at $12,661,867.52. The trade was a 3.56% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 26,750 shares of company stock valued at $2,543,170. Insiders own 1.79% of the company's stock.

Analysts Set New Price Targets

MCHP has been the subject of a number of research reports. Citigroup lifted their price objective on Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a research report on Friday, May 8th. TD Cowen dropped their target price on Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research report on Monday, July 13th. Susquehanna raised their price target on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Barclays lifted their price target on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Finally, Zacks Research raised Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and an average target price of $99.76.

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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