Simplicity Wealth LLC Purchases New Stake in Microchip Technology Incorporated $MCHP

Key Points

• Simplicity Wealth LLC has acquired a new stake in Microchip Technology, purchasing 21,914 shares valued at approximately $1.54 million in the second quarter.
• Analysts have made varied assessments of Microchip Technology's stock, with a consensus rating of "Moderate Buy" and an average price target of $75.75.
• Recently, insider transactions at Microchip Technology showed significant sales, with a director selling 10,000 shares, indicating a possible decrease in insider confidence.

Simplicity Wealth LLC purchased a new position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 21,914 shares of the semiconductor company's stock, valued at approximately $1,542,000.

A number of other hedge funds have also recently modified their holdings of the company. Garde Capital Inc. bought a new stake in shares of Microchip Technology in the first quarter worth about $30,000. MCF Advisors LLC grew its position in shares of Microchip Technology by 211.2% in the 2nd quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock worth $33,000 after buying an additional 321 shares during the last quarter. Carderock Capital Management Inc. bought a new stake in shares of Microchip Technology in the 2nd quarter worth approximately $39,000. WPG Advisers LLC purchased a new position in shares of Microchip Technology during the first quarter valued at approximately $40,000. Finally, Painted Porch Advisors LLC bought a new position in shares of Microchip Technology during the second quarter valued at approximately $40,000. Hedge funds and other institutional investors own 91.51% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Microchip Technology from a "sell" rating to a "hold" rating in a report on Friday, June 27th. KeyCorp boosted their price target on shares of Microchip Technology from $70.00 to $85.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Wells Fargo & Company assumed coverage on shares of Microchip Technology in a report on Monday, September 15th. They issued an "equal weight" rating and a $60.00 price objective for the company. TD Cowen reduced their target price on Microchip Technology from $75.00 to $60.00 and set a "hold" rating on the stock in a report on Friday, August 8th. Finally, Cantor Fitzgerald assumed coverage on Microchip Technology in a research report on Wednesday, June 18th. They issued a "neutral" rating and a $70.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $75.75.

Insider Transactions at Microchip Technology

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

Microchip Technology Price Performance

MCHP stock opened at $66.59 on Tuesday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The firm has a 50 day moving average price of $65.59 and a 200-day moving average price of $60.79. Microchip Technology Incorporated has a 52-week low of $34.13 and a 52-week high of $79.44. The firm has a market capitalization of $35.94 billion, a price-to-earnings ratio of -195.85, a PEG ratio of 1.91 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $1.08 billion during 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%.The firm's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter last year, the company earned $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Equities research analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's dividend payout ratio is -535.29%.

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.

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