Renaissance Technologies LLC Sells 1,188,100 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Renaissance Technologies cut its Microchip Technology position by 97.7%, selling 1,188,100 shares and retaining 28,356 shares valued at approximately $1.83 million. Institutional investors still own 91.51% of the company.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $98.85, despite some target reductions and a downgrade.
• Microchip reported quarterly EPS of $0.76 and revenue of $1.48 billion, beating estimates and increasing revenue 38% year over year. The company also declared a quarterly dividend of $0.455 per share, representing a 2.2% annualized yield.

Renaissance Technologies LLC reduced its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 97.7% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 28,356 shares of the semiconductor company's stock after selling 1,188,100 shares during the quarter. Renaissance Technologies LLC's holdings in Microchip Technology were worth $1,832,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. AQR Capital Management LLC grew its position in shares of Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after purchasing an additional 5,835 shares in the last quarter. Geneos Wealth Management Inc. raised its position in shares of Microchip Technology by 101.8% in the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock worth $59,000 after buying an additional 616 shares in the last quarter. Cresset Asset Management LLC boosted its stake in Microchip Technology by 5.4% during the second quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after buying an additional 589 shares during the period. AXA S.A. boosted its stake in Microchip Technology by 21.3% during the second quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after buying an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina grew its position in Microchip Technology by 1.6% during the second quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after buying an additional 3,851 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Analyst Ratings Changes

A number of brokerages have weighed in on MCHP. Zacks Research upgraded Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. TD Cowen dropped their price target on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a research report on Monday, July 13th. Needham & Company LLC boosted their price objective on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Susquehanna upped their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. Finally, Weiss Ratings downgraded shares of Microchip Technology from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, July 24th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average price target of $98.85.

Insider Buying and Selling

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares in the company, valued at $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% 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 26,750 shares of company stock worth $2,543,170 in the last quarter. 1.79% of the stock is owned by insiders.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $81.02 on Wednesday. Microchip Technology Incorporated has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. The company has a market capitalization of $43.99 billion, a P/E ratio of 120.93, a P/E/G ratio of 0.65 and a beta of 1.76. The company has a fifty day moving average of $86.62 and a 200-day moving average of $81.44.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The business had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the firm earned $0.27 earnings per share. The firm's revenue was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts predict that Microchip Technology Incorporated will post 2.74 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology's dividend payout ratio (DPR) is currently 271.64%.

About Microchip Technology

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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