Microchip Technology Incorporated (NASDAQ:MCHP) Holdings Boosted by Ridgewood Investments LLC

Key Points

• Ridgewood Investments LLC increased its holdings in Microchip Technology by 47% during the first quarter, acquiring an additional 8,979 shares, bringing its total to 28,065 shares valued at approximately $1.32 million.
• Microchip Technology reported earnings of $0.11 per share for the recent quarter, exceeding analysts' expectations, but revenue declined by 26.8% year-over-year to $970.5 million.
• The company declared a quarterly dividend of $0.455 per share, reflecting an annualized yield of 2.63%, with 91.51% of stock owned by institutional investors.

Ridgewood Investments LLC grew its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 47.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 28,065 shares of the semiconductor company's stock after acquiring an additional 8,979 shares during the quarter. Ridgewood Investments LLC's holdings in Microchip Technology were worth $1,318,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank acquired a new stake in shares of Microchip Technology in the fourth quarter valued at approximately $452,627,000. Barrow Hanley Mewhinney & Strauss LLC increased its holdings 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. Franklin Resources Inc. increased its stake in Microchip Technology by 90.0% during the fourth quarter. Franklin Resources Inc. now owns 6,360,805 shares of the semiconductor company's stock worth $364,792,000 after acquiring an additional 3,013,162 shares during the last quarter. Meritage Group LP acquired a new stake in Microchip Technology during the fourth quarter worth $145,033,000. Finally, Fiduciary Management Inc. WI acquired a new stake in Microchip Technology during the fourth quarter worth $119,431,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Microchip Technology Trading Down 3.8%

Shares of Microchip Technology stock traded down $2.68 during trading hours on Thursday, reaching $67.61. 4,682,753 shares of the company's stock were exchanged, compared to its average volume of 10,430,157. The company has a current ratio of 2.59, a quick ratio of 1.47 and a debt-to-equity ratio of 0.80. The firm has a market capitalization of $36.49 billion, a price-to-earnings ratio of -6,767.40, a price-to-earnings-growth ratio of 2.04 and a beta of 1.52. The company has a fifty day moving average of $68.45 and a 200-day moving average of $57.68. Microchip Technology Incorporated has a 52-week low of $34.13 and a 52-week high of $89.59.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, May 8th. The semiconductor company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.01. Microchip Technology had a positive return on equity of 8.55% and a negative net margin of 0.01%. The business had revenue of $970.50 million for the quarter, compared to analyst estimates of $962.86 million. During the same period last year, the company posted $0.57 EPS. The business's quarterly revenue was down 26.8% on a year-over-year basis. Sell-side analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were paid a dividend of $0.455 per share. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.69%. Microchip Technology's dividend payout ratio is presently -18,200.00%.

Insider Activity

In other news, CFO James Eric Bjornholt sold 2,015 shares of the firm's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $55.78, for a total transaction of $112,396.70. Following the completion of the sale, the chief financial officer directly owned 34,313 shares in the company, valued at $1,913,979.14. This trade represents a 5.55% 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, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total value of $29,980.86. Following the sale, the director owned 3,468 shares of the company's stock, valued at $210,472.92. This represents a 12.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on MCHP shares. UBS Group lifted their price objective on Microchip Technology from $65.00 to $85.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Needham & Company LLC reissued a "buy" rating and set a $66.00 target price on shares of Microchip Technology in a research note on Friday, May 9th. Cantor Fitzgerald started coverage on Microchip Technology in a research note on Wednesday, June 18th. They set a "neutral" rating and a $70.00 target price for the company. Morgan Stanley boosted their target price 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. Finally, Citigroup upped their price objective on Microchip Technology from $68.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Six research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Microchip Technology currently has an average rating of "Moderate Buy" and an average target price of $75.70.

Microchip Technology Company 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.