Redwood Investment Management LLC Acquires New Stake in Microchip Technology Incorporated $MCHP

Key Points

• Redwood Investment Management LLC has invested approximately $1.38 million in Microchip Technology by acquiring 28,535 shares, reflecting institutional investors' growing interest in the company.
• Microchip Technology reported earnings of $0.27 per share for their last quarter, beating expectations, but showed a 13.3% year-over-year revenue decline.
• The company has declared a quarterly dividend of $0.455 per share, translating to a yield of 2.7% and indicating ongoing commitment to returning value to shareholders despite recent challenges.

Redwood Investment Management LLC purchased a new stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 28,535 shares of the semiconductor company's stock, valued at approximately $1,381,000.

Other large investors have also modified their holdings of the company. Garde Capital Inc. acquired a new stake in shares of Microchip Technology in the first quarter valued at approximately $30,000. Orion Capital Management LLC acquired a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $41,000. Byrne Asset Management LLC acquired a new stake in shares of Microchip Technology in the first quarter valued at approximately $41,000. GW&K Investment Management LLC boosted its holdings in shares of Microchip Technology by 161.0% in the first quarter. GW&K Investment Management LLC now owns 937 shares of the semiconductor company's stock valued at $45,000 after acquiring an additional 578 shares during the period. Finally, American National Bank & Trust acquired a new stake in shares of Microchip Technology in the first quarter valued at approximately $48,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Price Performance

Microchip Technology stock traded down $0.25 during trading hours on Monday, hitting $65.00. The stock had a trading volume of 9,209,632 shares, compared to its average volume of 9,431,667. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.31 and a quick ratio of 1.33. The stock has a market capitalization of $35.08 billion, a price-to-earnings ratio of -191.18, a PEG ratio of 1.88 and a beta of 1.56. Microchip Technology Incorporated has a 1-year low of $34.13 and a 1-year high of $82.65. The stock's fifty day moving average is $69.42 and its two-hundred day moving average is $59.32.

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

Microchip Technology Announces Dividend

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

Analyst Ratings Changes

Several research firms have recently commented on MCHP. Stifel Nicolaus upped their price target on Microchip Technology from $70.00 to $82.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Morgan Stanley upped their price target on Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Friday, May 9th. The Goldman Sachs Group began coverage on Microchip Technology in a research note on Thursday, July 10th. They set a "buy" rating and a $88.00 price target for the company. Mizuho upped their price target on Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 8th. Finally, Rosenblatt Securities upped their price target on Microchip Technology from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Microchip Technology presently has an average rating of "Moderate Buy" and an average target price of $76.58.

Insider Buying and Selling at Microchip Technology

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

About Microchip Technology

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.