Mizuho Markets Americas LLC Boosts Stake in Microchip Technology Incorporated (NASDAQ:MCHP)

Key Points

• Mizuho Markets Americas LLC increased its stake in Microchip Technology by 582.7%, owning 1,770,154 shares valued at approximately $85.7 million, making it the 16th largest holding in their portfolio.
• Microchip Technology announced a quarterly dividend of $0.455 to be paid on September 5th, representing an annualized yield of 2.9%.
• Recent analyst ratings show a positive outlook, with multiple firms increasing their target prices, including Susquehanna raising its target from $60.00 to $90.00, indicating strong investor confidence.

Mizuho Markets Americas LLC grew its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 582.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,770,154 shares of the semiconductor company's stock after purchasing an additional 1,510,878 shares during the quarter. Microchip Technology comprises approximately 1.8% of Mizuho Markets Americas LLC's investment portfolio, making the stock its 16th biggest holding. Mizuho Markets Americas LLC owned about 0.33% of Microchip Technology worth $85,693,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Goldman Sachs Group Inc. lifted its stake in shares of Microchip Technology by 138.9% during the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock worth $427,681,000 after buying an additional 5,136,154 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in shares of Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock worth $306,541,000 after buying an additional 3,912,895 shares during the period. Meritage Group LP acquired a new stake in shares of Microchip Technology during the fourth quarter worth $145,033,000. Fiduciary Management Inc. WI acquired a new stake in shares of Microchip Technology during the fourth quarter worth $119,431,000. Finally, Two Sigma Investments LP acquired a new stake in shares of Microchip Technology during the fourth quarter worth $93,196,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 2,015 shares of the stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $55.78, for a total value of $112,396.70. Following the completion of the sale, the chief financial officer owned 34,313 shares of the company's stock, valued at $1,913,979.14. This represents a 5.55% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Karlton D. Johnson sold 494 shares of the 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 directly owned 3,468 shares of the company's stock, valued at approximately $210,472.92. This trade represents a 12.47% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by corporate insiders.

Microchip Technology Price Performance

Shares of MCHP traded up $3.55 during mid-day trading on Tuesday, hitting $64.50. 12,673,559 shares of the company were exchanged, compared to its average volume of 9,757,185. Microchip Technology Incorporated has a 1-year low of $34.13 and a 1-year high of $82.87. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The company has a 50 day moving average of $69.68 and a 200-day moving average of $58.16. The stock has a market cap of $34.81 billion, a price-to-earnings ratio of -189.71, a price-to-earnings-growth ratio of 1.79 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. Microchip Technology's quarterly revenue was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.53 EPS. Analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be issued a $0.455 dividend. The ex-dividend date is Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. Microchip Technology's dividend payout ratio is presently -535.29%.

Analyst Ratings Changes

MCHP has been the subject of several research reports. Needham & Company LLC lifted 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 target price on shares of Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a research report on Friday. Cantor Fitzgerald initiated coverage on shares of Microchip Technology in a research report on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price for the company. Bank of America upgraded shares of Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 target price for the company in a research report on Friday, May 9th. Finally, Evercore ISI boosted their target price on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a research report on Thursday, June 12th. Six analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $76.58.

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.