Swiss National Bank Boosts Holdings in Microchip Technology Incorporated $MCHP

Key Points

• Swiss National Bank increased its Microchip Technology stake by 7.2% in the first quarter, bringing its holdings to 1,586,114 shares worth about $102.5 million.
• Microchip Technology reported stronger-than-expected quarterly results, with EPS of $0.57 versus $0.50 expected and revenue of $1.31 billion, up 35.1% year over year.
• Despite insider sales and a mixed analyst backdrop, the stock has a Moderate Buy consensus rating with an average price target of $99.76, above its recent opening price of $80.51.

Swiss National Bank increased its holdings in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 7.2% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 1,586,114 shares of the semiconductor company's stock after acquiring an additional 107,200 shares during the period. Swiss National Bank owned approximately 0.29% of Microchip Technology worth $102,479,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in the stock. Wolverine Asset Management LLC raised its position in shares of Microchip Technology by 3,833.7% in the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock valued at $2,416,000 after buying an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group acquired a new stake in shares of Microchip Technology during the 4th quarter worth approximately $6,691,000. Epoch Investment Partners Inc. increased its stake in Microchip Technology by 16.5% in the fourth quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company's stock valued at $85,967,000 after acquiring an additional 191,339 shares during the last quarter. Peregrine Investment Management Inc. acquired a new position in Microchip Technology during the first quarter valued at approximately $5,492,000. Finally, Norges Bank acquired a new position in Microchip Technology during the fourth quarter valued at approximately $664,564,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Matthew W. Chapman sold 3,000 shares of Microchip Technology stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the sale, the director directly owned 17,665 shares in the company, valued at approximately $1,722,690.80. This trade represents a 14.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Steve Sanghi sold 76,469 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total value of $7,155,969.02. Following the completion of the transaction, the chief executive officer directly owned 9,385,834 shares in the company, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $49,673,635. Insiders own 1.79% of the company's stock.

Microchip Technology Price Performance

MCHP stock opened at $80.51 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The firm has a market cap of $43.72 billion, a price-to-earnings ratio of 383.40, a PEG ratio of 0.82 and a beta of 1.74. The company's fifty day simple moving average is $91.78 and its 200 day simple moving average is $80.70. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the firm earned $0.11 earnings per share. Microchip Technology's revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts expect that Microchip Technology Incorporated will post 2.69 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.455 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. Microchip Technology's dividend payout ratio is currently 866.67%.

Analysts Set New Price Targets

A number of research firms have recently commented on MCHP. Wells Fargo & Company lowered their price target on Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating for the company in a report on Monday. Weiss Ratings upgraded Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Rosenblatt Securities boosted their target price on Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Cantor Fitzgerald restated an "overweight" rating and issued a $125.00 price target on shares of Microchip Technology in a research note on Wednesday, May 13th. Finally, Barclays lifted their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $99.76.

Microchip Technology Company 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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