QRG Capital Management Inc. Buys 26,902 Shares of Microchip Technology Incorporated $MCHP

Key Points

• QRG Capital Management increased its Microchip Technology stake by 43.4% in the first quarter, buying 26,902 additional shares and bringing its total holdings to 88,825 shares worth about $5.74 million.
• Microchip Technology reported strong quarterly results, with EPS of $0.57 topping estimates of $0.50 and revenue of $1.31 billion exceeding expectations; revenue also rose 35.1% year over year.
• Analysts remain generally positive on MCHP, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating and an average target price of $98.18.

QRG Capital Management Inc. lifted its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 43.4% in the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 88,825 shares of the semiconductor company's stock after purchasing an additional 26,902 shares during the quarter. QRG Capital Management Inc.'s holdings in Microchip Technology were worth $5,739,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. EFG International AG bought a new stake in Microchip Technology in the fourth quarter worth $29,000. Miller Capital Partners Inc. bought a new position in Microchip Technology during the fourth quarter valued at $29,000. Reflection Asset Management bought a new position in Microchip Technology during the fourth quarter valued at $33,000. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Microchip Technology in the fourth quarter valued at $33,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Microchip Technology by 4,663.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after acquiring an additional 513 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $84.64 on Monday. The stock has a market cap of $45.88 billion, a PE ratio of 403.07, a PEG ratio of 0.87 and a beta of 1.74. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The company's 50-day moving average price is $93.79 and its 200-day moving average price is $79.15. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced 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 company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm's revenue for the quarter 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. Equities research analysts forecast that Microchip Technology Incorporated will post 2.66 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were paid a $0.455 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 2.2%. Microchip Technology's dividend payout ratio is 866.67%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on MCHP. Citigroup upped their price target on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. JPMorgan Chase & Co. raised their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Weiss Ratings upgraded Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Barclays upped their target price on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a report on Wednesday, May 13th. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $98.18.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares of the company's stock, valued at $2,596,428.51. The trade was a 11.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Sanghi sold 416,581 shares of the company's stock in a transaction on 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 sale, the chief executive officer owned 9,495,805 shares of the company's stock, valued at $840,663,616.65. This represents a 4.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 553,302 shares of company stock worth $49,673,635 in the last ninety days. 1.94% of the stock is owned by company insiders.

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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