Rakuten Investment Management Inc. Boosts Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Rakuten Investment Management boosted its stake in Microchip Technology by 402.5% in the fourth quarter, ending with 150,083 shares valued at about $9.7 million.
• Microchip Technology reported better-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% from a year earlier.
• Analysts remain mostly constructive on the stock, with a Moderate Buy consensus and an average price target of $98.18, while insiders have recently sold shares, including the CFO and a director.

Rakuten Investment Management Inc. increased its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 402.5% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 150,083 shares of the semiconductor company's stock after purchasing an additional 120,215 shares during the period. Rakuten Investment Management Inc.'s holdings in Microchip Technology were worth $9,703,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in MCHP. Caitong International Asset Management Co. Ltd raised its holdings in Microchip Technology by 4,663.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 513 shares in the last quarter. GoalVest Advisory LLC raised its holdings in Microchip Technology by 174.0% during the fourth quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 348 shares in the last quarter. Board of the Pension Protection Fund purchased a new position in Microchip Technology during the fourth quarter worth about $38,000. Kohmann Bosshard Financial Services LLC purchased a new position in Microchip Technology during the fourth quarter worth about $38,000. Finally, Rossby Financial LCC raised its holdings in Microchip Technology by 41.1% during the fourth quarter. Rossby Financial LCC now owns 628 shares of the semiconductor company's stock worth $40,000 after purchasing an additional 183 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Performance

Shares of MCHP opened at $95.63 on Wednesday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The company has a market capitalization of $51.84 billion, a price-to-earnings ratio of 455.40, a PEG ratio of 1.06 and a beta of 1.73. The company's 50 day simple moving average is $89.15 and its 200 day simple moving average is $76.43. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91.

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 (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company's quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts predict that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Dividend Announcement

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 dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. Microchip Technology's dividend payout ratio is presently 866.67%.

Wall Street Analyst Weigh In

MCHP has been the subject of several analyst reports. UBS Group reissued a "buy" rating on shares of Microchip Technology in a report on Tuesday, June 2nd. Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Zacks Research upgraded shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Finally, Rosenblatt Securities upped their target price on shares of Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. 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.com, Microchip Technology currently has an average rating of "Moderate Buy" and an average target price of $98.18.

Insider Activity

In related news, Director Matthew W. Chapman sold 10,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $95.48, for a total transaction of $954,800.00. Following the transaction, the director owned 20,665 shares of the company's stock, valued at approximately $1,973,094.20. This represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. The trade was a 11.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 553,302 shares of company stock worth $49,673,635. 1.94% of the stock is currently owned by corporate 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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