Vanguard Group Inc. Has $4.68 Billion Position in Microchip Technology Incorporated $MCHP

Key Points

• Vanguard increased its stake to 73,506,339 shares of Microchip (a 2.0% Q4 boost), holding about 13.6% of the company — a position valued at roughly $4.68 billion while institutional investors own 91.51% of the stock.
• CEO Steve Sanghi sold 416,581 shares on April 23 at an average of $88.53 for about $36.88 million under a Rule 10b5-1 plan, reducing his ownership to ~9.50 million shares (a 4.2% drop).
• Research firms have raised price targets (JPMorgan and UBS to $95) and MarketBeat shows a consensus rating of Moderate Buy with an $86 target, following Q results of $0.44 EPS (beat) and 15.6% year-over-year revenue growth.

Vanguard Group Inc. lifted its stake in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 2.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 73,506,339 shares of the semiconductor company's stock after buying an additional 1,430,781 shares during the period. Vanguard Group Inc. owned about 13.60% of Microchip Technology worth $4,683,824,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of MCHP. Winnow Wealth LLC acquired a new position in shares of Microchip Technology in the 3rd quarter worth approximately $25,000. Root Financial Partners LLC acquired a new position in shares of Microchip Technology in the 3rd quarter worth approximately $28,000. Salomon & Ludwin LLC raised its holdings in shares of Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company's stock worth $32,000 after buying an additional 329 shares in the last quarter. Quent Capital LLC acquired a new position in shares of Microchip Technology in the 3rd quarter worth approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. increased its holdings in Microchip Technology by 106.8% during the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 267 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms recently weighed in on MCHP. Truist Financial raised their price target on Microchip Technology from $60.00 to $68.00 and gave the company a "hold" rating in a report on Friday, February 6th. JPMorgan Chase & Co. raised their price target on Microchip Technology from $85.00 to $95.00 and gave the company an "overweight" rating in a report on Friday, February 6th. UBS Group raised their price target on Microchip Technology from $85.00 to $95.00 and gave the company a "buy" rating in a report on Monday, January 26th. KeyCorp reaffirmed an "overweight" rating and set a $85.00 price target on shares of Microchip Technology in a report on Friday, February 6th. Finally, Piper Sandler raised their price target on Microchip Technology from $80.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday, January 15th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus target price of $86.00.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 416,581 shares of Microchip Technology stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at approximately $840,663,616.65. The trade was a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.94% of the company's stock.

Microchip Technology Stock Down 2.9%

Shares of Microchip Technology stock opened at $86.84 on Tuesday. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. Microchip Technology Incorporated has a 12 month low of $44.17 and a 12 month high of $92.24. The business has a fifty day simple moving average of $71.17 and a 200 day simple moving average of $67.90. The stock has a market cap of $46.99 billion, a PE ratio of -299.45, a price-to-earnings-growth ratio of 1.20 and a beta of 1.49.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.01. The firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The company's revenue for the quarter was up 15.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Research analysts predict that Microchip Technology Incorporated will post 1.16 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were issued a dividend of $0.455 per share. The ex-dividend date was Monday, February 23rd. This represents a $1.82 annualized dividend and a yield of 2.1%. Microchip Technology's payout ratio is currently -627.59%.

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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