Orbis Allan Gray Ltd Invests $369.61 Million in Microchip Technology Incorporated $MCHP

Key Points

• Orbis Allan Gray Ltd has acquired a new stake in Microchip Technology by purchasing 7,635,024 shares valued at approximately $369.6 million, making it the fund's 14th largest holding.
• In a recent quarterly earnings report, Microchip Technology surpassed earnings estimates with an EPS of $0.27, although revenue declined by 13.3% year-over-year.
• The company also announced a quarterly dividend of $0.455 per share, representing a 2.8% yield, with an ex-dividend date of August 22nd.

Orbis Allan Gray Ltd bought a new position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The institutional investor bought 7,635,024 shares of the semiconductor company's stock, valued at approximately $369,612,000. Microchip Technology accounts for 2.1% of Orbis Allan Gray Ltd's holdings, making the stock its 14th biggest holding. Orbis Allan Gray Ltd owned 1.42% of Microchip Technology at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Northwest Bank & Trust Co grew its position in shares of Microchip Technology by 3.0% in the 4th quarter. Northwest Bank & Trust Co now owns 7,392 shares of the semiconductor company's stock worth $424,000 after buying an additional 217 shares during the last quarter. Clearstead Trust LLC boosted its stake 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 buying an additional 224 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its stake in shares of Microchip Technology by 0.5% in the first quarter. Oregon Public Employees Retirement Fund now owns 46,235 shares of the semiconductor company's stock worth $2,238,000 after buying an additional 230 shares during the last quarter. Greenleaf Trust boosted its position in Microchip Technology by 1.0% during the first quarter. Greenleaf Trust now owns 24,933 shares of the semiconductor company's stock worth $1,207,000 after purchasing an additional 242 shares in the last quarter. Finally, Bartlett & CO. Wealth Management LLC boosted its position in Microchip Technology by 3.4% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 8,360 shares of the semiconductor company's stock worth $405,000 after purchasing an additional 276 shares in the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Stock Down 0.4%

NASDAQ:MCHP traded down $0.25 during midday trading on Monday, reaching $65.00. The company had a trading volume of 9,209,632 shares, compared to its average volume of 9,431,667. The firm has a market capitalization of $35.08 billion, a price-to-earnings ratio of -191.18, a PEG ratio of 1.88 and a beta of 1.56. The stock's fifty day simple moving average is $69.34 and its 200-day simple moving average is $59.39. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $82.65. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, topping 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 positive return on equity of 6.24% and a negative net margin of 3.50%.Microchip Technology's revenue for the quarter was down 13.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, sell-side analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

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

Insider Transactions at Microchip Technology

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on MCHP shares. Susquehanna increased their price target on Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. KeyCorp increased their price target on Microchip Technology from $70.00 to $85.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Wall Street Zen raised Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. TD Cowen reduced their target price on Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a report on Friday, August 8th. Finally, Raymond James Financial increased their price target on Microchip Technology from $65.00 to $75.00 and gave the company a "strong-buy" rating in a report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $76.58.

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.