Muhlenkamp & Co. Inc. Increases Position in Microchip Technology Incorporated $MCHP

Key Points

• Muhlenkamp & Co. Inc. increased its holdings in Microchip Technology Incorporated by 81.4% in the second quarter, now owning 201,491 shares worth approximately $14.18 million.
• Several hedge funds, including Vanguard and Invesco, also boosted their stakes in Microchip Technology, which is now 91.51% owned by institutional investors.
• Microchip Technology reported a quarterly EPS of $0.27, exceeding estimates, although it experienced a revenue decline of 13.3% year-over-year.

Muhlenkamp & Co. Inc. raised its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 81.4% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 201,491 shares of the semiconductor company's stock after purchasing an additional 90,431 shares during the quarter. Microchip Technology accounts for approximately 4.4% of Muhlenkamp & Co. Inc.'s investment portfolio, making the stock its 12th biggest holding. Muhlenkamp & Co. Inc.'s holdings in Microchip Technology were worth $14,179,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Microchip Technology by 0.6% in the first quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock valued at $3,354,940,000 after purchasing an additional 390,269 shares during the last quarter. Invesco Ltd. boosted its holdings in Microchip Technology by 63.0% in the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock valued at $808,787,000 after purchasing an additional 6,459,123 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Microchip Technology by 0.9% in the first quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company's stock valued at $805,087,000 after purchasing an additional 152,434 shares during the last quarter. Boston Partners boosted its holdings in Microchip Technology by 35.3% in the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock valued at $517,082,000 after purchasing an additional 2,795,650 shares during the last quarter. Finally, Amundi boosted its holdings in Microchip Technology by 22.7% in the first quarter. Amundi now owns 10,013,285 shares of the semiconductor company's stock valued at $484,743,000 after purchasing an additional 1,849,866 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, CFO James Eric Bjornholt sold 7,356 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the transaction, the chief financial officer owned 30,010 shares in the company, valued at $2,062,287.20. This represents a 19.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the completion of the sale, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their position. The disclosure for this sale can be found here. 1.94% of the stock is owned by corporate insiders.

Microchip Technology Stock Up 3.0%

MCHP opened at $66.92 on Thursday. Microchip Technology Incorporated has a twelve month low of $34.13 and a twelve month high of $79.44. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. The company has a 50-day moving average price of $65.41 and a 200 day moving average price of $60.86. The company has a market cap of $36.12 billion, a PE ratio of -196.82, a price-to-earnings-growth ratio of 1.86 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 the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same quarter in the prior year, the firm earned $0.53 EPS. The company's revenue for the quarter was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Sell-side analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Friday, August 22nd. Microchip Technology's dividend payout ratio is -535.29%.

Analyst Ratings Changes

MCHP has been the topic of several recent research reports. Wells Fargo & Company initiated coverage on shares of Microchip Technology in a report on Monday, September 15th. They issued an "equal weight" rating and a $60.00 price target on the stock. Zacks Research lowered shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 18th. Citigroup increased their target price on shares of Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. UBS Group increased their target price on shares of Microchip Technology from $65.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Finally, Piper Sandler increased their target price on shares of Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $75.75.

About Microchip Technology

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.

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