Microchip Technology Incorporated $MCHP Stock: Perpetual Ltd Cuts Holdings

Key Points

• Perpetual Ltd reduced its Microchip Technology holdings by 6.7% in the third quarter, selling 18,587 shares and retaining 259,959 shares valued at approximately $20.2 million. Institutional investors and hedge funds collectively own 91.51% of the stock.
• Microchip reported quarterly earnings of $0.76 per share, beating estimates of $0.70, while revenue rose 38% year over year to $1.48 billion. The company also maintains a $1.82 annualized dividend, yielding about 2.5%.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.67, despite several recent target-price reductions. MCHP opened at $73.83, below the consensus target.

Perpetual Ltd cut its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 6.7% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 259,959 shares of the semiconductor company's stock after selling 18,587 shares during the quarter. Perpetual Ltd's holdings in Microchip Technology were worth $20,217,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. GK Wealth Management LLC acquired a new position in Microchip Technology during the third quarter valued at $29,000. Wedmont Private Capital grew its position in Microchip Technology by 36.6% during the 3rd quarter. Wedmont Private Capital now owns 4,036 shares of the semiconductor company's stock worth $305,000 after purchasing an additional 1,082 shares during the period. Legacy Wealth Asset Management LLC raised its stake in shares of Microchip Technology by 17.4% during the 3rd quarter. Legacy Wealth Asset Management LLC now owns 10,134 shares of the semiconductor company's stock valued at $788,000 after buying an additional 1,500 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Microchip Technology by 8.0% during the 3rd quarter. GAMMA Investing LLC now owns 23,351 shares of the semiconductor company's stock valued at $1,816,000 after buying an additional 1,739 shares during the last quarter. Finally, Westwind Capital lifted its holdings in shares of Microchip Technology by 4.5% in the 3rd quarter. Westwind Capital now owns 18,856 shares of the semiconductor company's stock valued at $1,466,000 after buying an additional 811 shares during the period. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Price Performance

NASDAQ:MCHP opened at $73.83 on Tuesday. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. 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 stock has a market capitalization of $40.09 billion, a PE ratio of 110.20, a price-to-earnings-growth ratio of 0.53 and a beta of 1.77. The stock's 50-day moving average price is $76.02 and its 200-day moving average price is $82.30.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced 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. The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%. Microchip Technology's revenue for the quarter was up 38.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities analysts expect that Microchip Technology Incorporated will post 3.16 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. UBS Group reaffirmed a "buy" rating and set a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Wells Fargo & Company lowered their price objective on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research report on Monday, July 20th. Cantor Fitzgerald restated an "overweight" rating on shares of Microchip Technology in a research report on Wednesday, September 9th. TD Cowen dropped their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Finally, Citigroup cut their target price 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. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $98.67.

Insider Activity

In other 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 transaction of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.79% of the stock is owned by company insiders.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company's product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.

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