Goldman Sachs Group Inc. Acquires 5,136,154 Shares of Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Goldman Sachs Group Inc. increased its stake in Microchip Technology by 138.9%, owning approximately 1.64% of the company worth $427.7 million as of its latest SEC filing.
• A range of hedge funds have recently invested in Microchip Technology, contributing to institutional investors now holding 91.51% of the stock.
• Microchip Technology declared a quarterly dividend of $0.455, reflecting a 2.7% dividend yield for investors of record on August 22nd.

Goldman Sachs Group Inc. grew its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 138.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 8,834,550 shares of the semiconductor company's stock after buying an additional 5,136,154 shares during the quarter. Goldman Sachs Group Inc. owned about 1.64% of Microchip Technology worth $427,681,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. iA Global Asset Management Inc. raised its holdings in shares of Microchip Technology by 2.3% in the 1st quarter. iA Global Asset Management Inc. now owns 59,202 shares of the semiconductor company's stock worth $2,866,000 after purchasing an additional 1,321 shares in the last quarter. New Age Alpha Advisors LLC bought a new stake in shares of Microchip Technology in the 1st quarter worth approximately $3,042,000. Clearstead Trust LLC increased its position in shares of Microchip Technology by 10.5% in the first quarter. Clearstead Trust LLC now owns 2,356 shares of the semiconductor company's stock worth $114,000 after acquiring an additional 224 shares in the last quarter. ING Groep NV purchased a new position in shares of Microchip Technology in the first quarter worth approximately $4,172,000. Finally, Raiffeisen Bank International AG grew its position in Microchip Technology by 90.4% during the first quarter. Raiffeisen Bank International AG now owns 6,239 shares of the semiconductor company's stock valued at $304,000 after purchasing an additional 2,962 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Stifel Nicolaus boosted their target price 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. Morgan Stanley boosted their target price on shares of Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Friday, May 9th. Needham & Company LLC boosted their price objective on shares of Microchip Technology from $66.00 to $77.00 and gave the stock a "buy" rating in a research note on Friday. Raymond James Financial boosted their price objective on shares of Microchip Technology from $65.00 to $75.00 and gave the stock a "strong-buy" rating in a research note on Friday. Finally, KeyCorp boosted their price objective on shares of Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Six equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $76.58.

Insider Activity at Microchip Technology

In other news, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $55.78, for a total transaction of $112,396.70. Following the transaction, the chief financial officer owned 34,313 shares of the company's stock, valued at approximately $1,913,979.14. This trade represents a 5.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the completion of the sale, the director owned 3,468 shares in the company, valued at $210,472.92. The trade was a 12.47% 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 traded down $4.35 during mid-day trading on Friday, reaching $61.87. The company's stock had a trading volume of 20,069,831 shares, compared to its average volume of 8,773,815. Microchip Technology Incorporated has a 52 week low of $34.13 and a 52 week high of $82.87. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.59 and a quick ratio of 1.47. The stock has a fifty day moving average of $69.65 and a two-hundred day moving average of $58.10. The firm has a market capitalization of $33.39 billion, a PE ratio of -181.97, a P/E/G ratio of 1.79 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.33% and a negative net margin of 3.50%. The company had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same quarter in the prior year, the firm posted $0.53 EPS. Microchip Technology's quarterly revenue was down 13.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Friday, August 22nd. Microchip Technology's payout ratio is currently -18,200.00%.

Microchip Technology Profile

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.