Truist Financial Corp Sells 24,262 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Truist Financial reduced its Microchip Technology stake by 12.8% in the fourth quarter, selling 24,262 shares and leaving it with 164,707 shares valued at about $10.5 million.
• Microchip Technology reported better-than-expected fiscal Q4 results, with EPS of $0.57 and revenue of $1.31 billion, both ahead of estimates, while revenue rose 35.1% year over year.
• Analysts and the company’s recent actions have turned more upbeat: several firms raised price targets after earnings, and Microchip also boosted its quarterly dividend to $0.455 per share.

Truist Financial Corp lessened its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 12.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 164,707 shares of the semiconductor company's stock after selling 24,262 shares during the quarter. Truist Financial Corp's holdings in Microchip Technology were worth $10,495,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in MCHP. AQR Capital Management LLC increased its stake in Microchip Technology by 51.3% in the first quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after acquiring an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in Microchip Technology by 101.8% in the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after acquiring an additional 616 shares during the last quarter. Cresset Asset Management LLC increased its stake in Microchip Technology by 5.4% in the second quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after acquiring an additional 589 shares during the last quarter. AXA S.A. increased its stake in Microchip Technology by 21.3% in the second quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after acquiring an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its stake in Microchip Technology by 1.6% in the second quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock valued at $17,348,000 after acquiring an additional 3,851 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Stock Down 2.5%

Shares of NASDAQ:MCHP opened at $99.09 on Friday. The stock's 50-day moving average price is $73.27 and its 200-day moving average price is $69.20. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91. The stock has a market capitalization of $53.62 billion, a P/E ratio of 471.88, a price-to-earnings-growth ratio of 1.36 and a beta of 1.75. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a return on equity of 10.76% and a net margin of 4.88%.The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.26 billion. During the same period last year, the firm earned $0.11 earnings per share. The company's revenue for the quarter was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts anticipate that Microchip Technology Incorporated will post 2.14 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd 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 1.8%. The ex-dividend date is Friday, May 22nd. Microchip Technology's dividend payout ratio is currently 866.67%.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip delivered stronger-than-expected fiscal Q4 results, with earnings and revenue topping estimates and bookings improving, which supports the case for a recovery in demand. MCHP Q4 Earnings Top Estimates, Broad-Based Demand Recovery Aids Sales
• Positive Sentiment: Analysts quickly turned more constructive after the report, with multiple firms raising price targets to $113-$120 and several reiterating buy/overweight-type ratings, signaling increased confidence in earnings momentum. Analysts Boost Their Forecasts Following Upbeat Q4 Results
• Positive Sentiment: Citigroup, JPMorgan, Susquehanna, Needham, Rosenblatt and others lifted targets, reinforcing the view that Microchip’s recovery is broadening and that shares may still have room to run. Tickerreport.com
• Positive Sentiment: The company also increased its quarterly dividend to 45.5 cents per share, which may appeal to income-focused investors and reflects confidence in cash generation. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share

Analysts Set New Price Targets

MCHP has been the topic of a number of research analyst reports. Stifel Nicolaus set a $90.00 target price on Microchip Technology in a research note on Friday, February 6th. Zacks Research cut Microchip Technology from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 24th. KeyCorp reaffirmed an "overweight" rating and set a $85.00 price objective on shares of Microchip Technology in a research note on Friday, February 6th. JPMorgan Chase & Co. raised their price objective on Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a research note on Friday. Finally, Bank of America raised Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price objective on the stock in a research note on Wednesday, January 28th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $95.35.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 76,469 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 526,552 shares of company stock worth $47,130,465 in the last ninety days. Corporate insiders own 1.94% of the company's stock.

Microchip Technology 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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