Microchip Technology Incorporated $MCHP Stock: Inspire Investing LLC Raises Stake

Key Points

• Institutional ownership increased: Inspire Investing raised its Microchip Technology stake by 27.7% to 127,575 shares, while institutional investors and hedge funds collectively own 91.51% of the stock.
• Quarterly results exceeded expectations: Microchip reported $0.76 in adjusted earnings per share and $1.48 billion in revenue, surpassing estimates and representing 38% year-over-year revenue growth. The company issued Q2 2027 EPS guidance of $0.91–$0.95.
• Analysts remain moderately positive despite a lower share price: MCHP recently traded near $74, while analysts’ consensus rating is “Moderate Buy” with an average price target of $97.71. The company also pays a quarterly dividend of $0.455 per share, yielding about 2.5%.

Inspire Investing LLC lifted its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 27.7% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 127,575 shares of the semiconductor company's stock after acquiring an additional 27,705 shares during the quarter. Inspire Investing LLC's holdings in Microchip Technology were worth $9,922,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. State Street Corp increased its position in Microchip Technology by 2.9% during the 2nd quarter. State Street Corp now owns 28,851,673 shares of the semiconductor company's stock valued at $2,631,273,000 after purchasing an additional 821,147 shares during the period. Van ECK Associates Corp raised its holdings in Microchip Technology by 18.3% during the 2nd quarter. Van ECK Associates Corp now owns 8,224,808 shares of the semiconductor company's stock worth $750,102,000 after purchasing an additional 1,272,838 shares during the last quarter. Artemis Wealth Advisors LLC bought a new position in Microchip Technology during the 2nd quarter worth approximately $541,413,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Microchip Technology in the 2nd quarter worth approximately $537,423,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Microchip Technology by 23.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,060,528 shares of the semiconductor company's stock worth $461,520,000 after purchasing an additional 962,362 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Stock Down 0.6%

Shares of NASDAQ MCHP opened at $74.05 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The firm has a market cap of $40.21 billion, a PE ratio of 110.52, a P/E/G ratio of 0.51 and a beta of 1.77. The company's fifty day simple moving average is $75.09 and its 200 day simple moving average is $82.82. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share 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 firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the previous year, the firm posted $0.27 earnings per share. The business'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, sell-side analysts forecast that Microchip Technology Incorporated will post 3.20 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were paid a dividend of $0.4550 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology's dividend payout ratio is 271.64%.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the stock in a transaction that occurred 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 in the company, valued at approximately $2,152,118.36. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently commented on MCHP shares. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Citigroup lowered their target price on shares of Microchip Technology from $113.00 to $95.00 and set a "buy" rating for the company in a research note on Friday, August 7th. TD Cowen dropped their target price on shares of Microchip Technology from $90.00 to $75.00 and set a "hold" rating on the stock in a report on Monday, October 19th. Rosenblatt Securities restated a "buy" rating and issued a $120.00 target price on shares of Microchip Technology in a report on Friday, August 7th. Finally, B. Riley Financial cut their price target on shares of Microchip Technology from $108.00 to $98.00 and set a "buy" rating on the stock in a research report on Thursday. Three research 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, Microchip Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $97.71.

About Microchip Technology

Microchip Technology Incorporated NASDAQ: MCHP develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip's products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.

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