Norges Bank Makes New $664.56 Million Investment in Microchip Technology Incorporated $MCHP

Key Points

• Norges Bank opened a new position in Microchip Technology in the fourth quarter, buying 10,429,442 shares valued at about $664.6 million. The stake represented 1.93% of the company.
• Other large institutional investors also boosted their holdings, and institutions/hedge funds now own 91.51% of Microchip Technology’s stock, signaling broad professional interest in the semiconductor name.
• Microchip Technology reported better-than-expected quarterly results with EPS of $0.57 on revenue of $1.31 billion, and analysts have been raising price targets, with the stock receiving a Moderate Buy consensus rating.

Norges Bank bought a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 10,429,442 shares of the semiconductor company's stock, valued at approximately $664,564,000. Norges Bank owned 1.93% of Microchip Technology as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently bought and sold shares of MCHP. Barrow Hanley Mewhinney & Strauss LLC grew its holdings in Microchip Technology by 25.7% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock worth $709,506,000 after acquiring an additional 2,257,932 shares during the period. Holocene Advisors LP grew its holdings in Microchip Technology by 77.0% during the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock worth $302,447,000 after acquiring an additional 2,049,249 shares during the period. Rafferty Asset Management LLC grew its holdings in Microchip Technology by 41.0% during the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock worth $436,559,000 after acquiring an additional 1,803,945 shares during the period. Bank of America Corp DE grew its holdings in Microchip Technology by 18.8% during the 3rd quarter. Bank of America Corp DE now owns 11,419,944 shares of the semiconductor company's stock worth $733,389,000 after acquiring an additional 1,803,831 shares during the period. Finally, Ameriprise Financial Inc. grew its holdings in Microchip Technology by 255.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock worth $150,271,000 after acquiring an additional 1,534,829 shares during the period. Institutional investors and hedge funds own 91.51% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on MCHP shares. Mizuho lifted their target price on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an "outperform" rating in a report on Friday, February 6th. Argus raised shares of Microchip Technology to a "strong-buy" rating in a report on Monday, February 9th. Wall Street Zen raised shares of Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. JPMorgan Chase & Co. lifted their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Finally, Needham & Company LLC lifted their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $97.52.

Microchip Technology Stock Performance

Shares of NASDAQ MCHP opened at $94.65 on Monday. The company's fifty day moving average is $82.04 and its 200-day moving average is $72.93. The stock has a market cap of $51.31 billion, a price-to-earnings ratio of 450.74, a P/E/G ratio of 1.00 and a beta of 1.73. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business's quarterly revenue was up 35.1% compared to the same quarter last year. During the same period last year, the firm posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities research analysts predict that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently announced 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. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.9%. Microchip Technology's dividend payout ratio is presently 866.67%.

Insider Activity at Microchip Technology

In other Microchip Technology news, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $95.48, for a total transaction of $954,800.00. Following the completion of the transaction, the director owned 20,665 shares in the company, valued at approximately $1,973,094.20. This represents a 32.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Steve Sanghi sold 416,581 shares of the 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 transaction, the chief executive officer owned 9,495,805 shares of the company's stock, valued at approximately $840,663,616.65. This trade represents a 4.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 548,302 shares of company stock valued at $49,186,035 in the last quarter. 1.94% of the stock is currently owned by company insiders.

About Microchip Technology

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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