Peregrine Investment Management Inc. Takes $5.49 Million Position in Microchip Technology Incorporated $MCHP

Key Points

• Peregrine Investment Management bought 85,000 shares of Microchip Technology in the first quarter, a stake worth about $5.49 million. The position makes MCHP its 14th-largest holding and accounts for 4.3% of the fund’s portfolio.
• Microchip Technology posted stronger-than-expected quarterly results, reporting EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% year over year. The company also guided Q1 2027 EPS to $0.67-$0.71.
• Analyst sentiment remains constructive, with several firms raising price targets and the consensus rating sitting at Moderate Buy with a target price of $97.52. Institutional ownership is high at 91.51%, while insiders have recently sold shares, including CEO Steve Sanghi and COO Richard J. Simoncic.

Peregrine Investment Management Inc. purchased a new stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 85,000 shares of the semiconductor company's stock, valued at approximately $5,492,000. Microchip Technology accounts for 4.3% of Peregrine Investment Management Inc.'s holdings, making the stock its 14th largest position.

Several other hedge funds have also recently bought and sold shares of MCHP. Norges Bank bought a new stake in Microchip Technology in the 4th quarter valued at about $664,564,000. Barclays PLC lifted its position in Microchip Technology by 66.5% in the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after purchasing an additional 5,590,210 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC lifted its position in Microchip Technology by 25.7% in the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after purchasing an additional 2,257,932 shares during the last quarter. Holocene Advisors LP lifted its position in Microchip Technology by 77.0% in the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after purchasing an additional 2,049,249 shares during the last quarter. Finally, Rafferty Asset Management LLC lifted its position in Microchip Technology by 41.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after purchasing an additional 1,803,945 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

Microchip Technology Stock Performance

Shares of MCHP opened at $96.30 on Friday. The company's 50 day moving average price is $84.54 and its 200 day moving average price is $74.07. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a market capitalization of $52.20 billion, a PE ratio of 458.59, a PEG ratio of 1.02 and a beta of 1.73. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09.

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

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a dividend of $0.455 per share. 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 payout ratio is presently 866.67%.

Analyst Ratings Changes

Several brokerages recently weighed in on MCHP. Wells Fargo & Company lifted their price objective on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Needham & Company LLC lifted their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Citigroup lifted their price objective on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Weiss Ratings upgraded shares of Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, May 22nd. Finally, KeyCorp restated an "overweight" rating and set a $85.00 price target on shares of Microchip Technology in a research report on Friday, February 6th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $97.52.

Insider Activity at Microchip Technology

In related news, COO Richard J. Simoncic sold 5,000 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $93.44, for a total transaction of $467,200.00. Following the transaction, the chief operating officer directly owned 135,508 shares of the company's stock, valued at approximately $12,661,867.52. The trade was a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Steve Sanghi sold 416,581 shares of the business's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at $840,663,616.65. The trade was a 4.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 548,302 shares of company stock valued at $49,186,035. Company insiders own 1.94% of the company's stock.

Microchip Technology 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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