Quarry LP Buys Shares of 4,254 Microchip Technology Incorporated $MCHP

Key Points

• Quarry LP has acquired a new position in Microchip Technology, purchasing 4,254 shares valued at approximately $206,000 in the 1st quarter.
• Wall Street analysts have increased their target prices significantly, with Citigroup raising it from $68.00 to $90.00 while giving a "buy" rating.
• Microchip Technology has announced a dividend of $0.455 per share, reflecting an annual yield of 2.8%, with the dividend payment set for September 5th.

Quarry LP acquired a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 4,254 shares of the semiconductor company's stock, valued at approximately $206,000.

Several other hedge funds and other institutional investors have also modified their holdings of MCHP. Orbis Allan Gray Ltd acquired a new position in Microchip Technology during the first quarter worth $369,612,000. Invesco Ltd. grew its position in shares of Microchip Technology by 63.0% in the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock valued at $808,787,000 after purchasing an additional 6,459,123 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Microchip Technology by 138.9% in the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after purchasing an additional 5,136,154 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its position in shares of Microchip Technology by 273.2% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock valued at $306,541,000 after purchasing an additional 3,912,895 shares during the last quarter. Finally, Boston Partners grew its position in shares of Microchip Technology by 35.3% in the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock valued at $517,082,000 after purchasing an additional 2,795,650 shares during the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms recently weighed in on MCHP. Bank of America raised Microchip Technology from an "underperform" rating to a "neutral" rating and set a $56.00 target price on the stock in a research report on Friday, May 9th. Stifel Nicolaus lifted their target price on Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Citigroup lifted their target price on Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Piper Sandler raised their price target on shares of Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Finally, TD Cowen cut their price target on shares of Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a research note on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $76.58.

Microchip Technology Stock Up 2.3%

MCHP traded up $1.49 during trading on Friday, hitting $65.92. The company had a trading volume of 7,765,182 shares, compared to its average volume of 10,329,731. The firm's 50-day moving average price is $68.91 and its 200 day moving average price is $59.50. The company has a quick ratio of 1.33, a current ratio of 2.31 and a debt-to-equity ratio of 0.80. Microchip Technology Incorporated has a one year low of $34.13 and a one year high of $81.64. The company has a market capitalization of $35.58 billion, a PE ratio of -193.88, a PEG ratio of 1.83 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.05 billion. During the same period in the previous year, the firm posted $0.53 EPS. The company's revenue for the quarter was down 13.3% on a year-over-year basis. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, equities analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 22nd will be given a $0.455 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. Microchip Technology's dividend payout ratio is presently -535.29%.

Insider Buying and Selling

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

Microchip Technology Profile

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.