Mitsubishi UFJ Asset Management Co. Ltd. Increases Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Mitsubishi UFJ Asset Management increased its stake in Microchip Technology by 4.5% in Q4 to 1,169,191 shares, valued at about $76.0 million.
• Strong quarter and outlook: Microchip beat Q4 estimates (EPS $0.57 vs. $0.50; revenue $1.311B, +35.1% YoY), raised Q1 FY2027 guidance (EPS $0.67–$0.71, revenue ~$1.4–$1.5B), and declared a quarterly dividend of $0.455 per share.
• Insider activity: CEO Steve Sanghi sold 416,581 shares (~$36.9M) under a pre-arranged Rule 10b5-1 plan, trimming his position by ~4.2% though insiders still own about 1.94% of the stock.

Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 4.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,169,191 shares of the semiconductor company's stock after buying an additional 50,772 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.22% of Microchip Technology worth $76,032,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Winnow Wealth LLC acquired a new stake in Microchip Technology during the 3rd quarter worth about $25,000. Root Financial Partners LLC acquired a new stake in Microchip Technology during the 3rd quarter worth about $28,000. Quent Capital LLC acquired a new stake in Microchip Technology during the 3rd quarter worth about $32,000. E Fund Management Hong Kong Co. Ltd. lifted its position in Microchip Technology by 106.8% during the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 267 shares during the period. Finally, GoalVest Advisory LLC lifted its position in Microchip Technology by 174.0% during the 4th quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after acquiring an additional 348 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Quarterly earnings beat — Microchip reported $0.57 EPS vs. $0.50 expected, signaling stronger profitability trends and beating consensus. Earnings Press Release
• Positive Sentiment: Raised guidance — MCHP updated 1Q FY2027 guidance with EPS of $0.67–$0.71 (consensus ~$0.56) and revenue of roughly $1.4–$1.5B (consensus ~$1.3B), pointing to continued demand momentum. Reuters: Forecasts Above Estimates
• Positive Sentiment: Top‑line strength — Q4 net sales were $1.311B, up 35.1% year‑over‑year and above the midpoint of prior guidance, supporting management’s upbeat outlook. GlobeNewswire: Financial Results
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.455 per share, which supports yield‑seeking investors and signals confidence in cash flow. GlobeNewswire: Dividend Announcement
• Positive Sentiment: New product momentum — Announced LAN878x/LAN888x SPE PHY families (automotive/industrial) and Intel‑collab timing modules for data centers/5G, reinforcing addressable market expansion in auto, industrial and infrastructure. GlobeNewswire: Product Release
• Neutral Sentiment: Analyst/coverage notes — Recent analyst commentary and articles debate valuation after a large run‑up; these shape sentiment but don’t change fundamentals immediately. Yahoo Finance: Valuation Discussion
• Negative Sentiment: Profitability quirks — Despite the EPS beat, public filings note a negative net margin metric and mixed historical valuation multiples, which can raise questions about one‑off items or margin sustainability. Earnings Press Release (margins)

Insider Buying and Selling at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. The trade was a 4.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 526,552 shares of company stock valued at $47,130,465. 1.94% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages have commented on MCHP. BNP Paribas Exane raised Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 price target for the company in a research report on Thursday, January 22nd. Barclays began coverage on Microchip Technology in a research report on Thursday, February 12th. They set an "equal weight" rating and a $80.00 price target for the company. Citigroup lowered their price target on Microchip Technology from $92.00 to $91.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Wells Fargo & Company lifted their price target on Microchip Technology from $68.00 to $70.00 and gave the stock an "equal weight" rating in a research report on Friday, February 6th. Finally, Susquehanna lifted their price target on Microchip Technology from $75.00 to $90.00 and gave the stock a "positive" rating in a research report on Thursday, January 22nd. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus target price of $86.00.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $101.58 on Friday. The stock has a 50-day simple moving average of $73.27 and a two-hundred day simple moving average of $69.20. The firm has a market capitalization of $54.97 billion, a P/E ratio of -350.28, a PEG ratio of 1.38 and a beta of 1.75. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $103.24. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The company's revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the business posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts forecast that Microchip Technology Incorporated will post 1.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be paid a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, May 22nd. Microchip Technology's payout ratio is currently -627.59%.

Microchip Technology Company 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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