QRG Capital Management Inc. Increases Stake in Microchip Technology Incorporated $MCHP

Key Points

• QRG Capital Management increased its Microchip Technology stake by 18.9% in the second quarter, bringing its holdings to 105,594 shares valued at approximately $9.63 million. Institutional investors and hedge funds collectively own 91.51% of the company.
• Microchip reported quarterly earnings of $0.76 per share, exceeding the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion. The company also declared a quarterly dividend of $0.455 per share, representing a 2.4% annualized yield.
• Analysts maintain a generally positive outlook, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $98.67, compared with a recent price of $74.69.

QRG Capital Management Inc. grew its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 18.9% in the second quarter, according to its most recent filing with the SEC. The fund owned 105,594 shares of the semiconductor company's stock after acquiring an additional 16,769 shares during the period. QRG Capital Management Inc.'s holdings in Microchip Technology were worth $9,630,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in the business. TOP Private Wealth LLC. acquired a new position in Microchip Technology in the second quarter valued at $29,000. Continuum Advisory LLC acquired a new stake in Microchip Technology during the 2nd quarter worth about $30,000. Johnson Financial Group Inc. bought a new position in shares of Microchip Technology in the 2nd quarter worth about $31,000. Reflection Asset Management bought a new position in shares of Microchip Technology in the 4th quarter worth about $33,000. Finally, Rakuten Securities Inc. acquired a new position in shares of Microchip Technology in the 2nd quarter valued at about $34,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the firm's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the sale, the chief financial officer owned 28,573 shares of the company's stock, valued at $2,152,118.36. This trade represents a 12.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company's stock.

Microchip Technology Price Performance

Microchip Technology stock opened at $74.69 on Friday. The firm has a market capitalization of $40.56 billion, a P/E ratio of 111.48, a PEG ratio of 0.53 and a beta of 1.75. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. The business has a fifty day moving average price of $76.04 and a 200-day moving average price of $81.11.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, topping the consensus estimate of $0.70 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.Microchip Technology's revenue was up 38.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts forecast that Microchip Technology Incorporated will post 3.16 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were paid a $0.4550 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Monday, August 24th. Microchip Technology's payout ratio is 271.64%.

Analysts Set New Price Targets

MCHP has been the subject of a number of research reports. Rosenblatt Securities restated a "buy" rating and issued a $120.00 price target on shares of Microchip Technology in a report on Friday, August 7th. BMO Capital Markets began coverage on shares of Microchip Technology in a research report on Friday, August 21st. They set an "outperform" rating and a $95.00 price objective on the stock. Citigroup reduced their target price on Microchip Technology from $113.00 to $95.00 and set a "buy" rating for the company in a research note on Friday, August 7th. UBS Group reaffirmed a "buy" rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a research report on Friday, August 7th. Finally, Wells Fargo & Company cut their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a report on Monday, July 20th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus price target of $98.67.

About Microchip Technology

Microchip Technology Incorporated NASDAQ: MCHP develops and manufactures semiconductor products for embedded control and connected applications. Its portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and connectivity solutions, memory products, field-programmable gate arrays (FPGAs), and security components.

The company also provides development tools, software, reference designs, and technical support that help customers design and integrate embedded systems.

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