VCI Wealth Management LLC Invests $835,000 in Microchip Technology Incorporated $MCHP

Key Points

• VCI Wealth Management opened a new position in Microchip Technology, buying 12,923 shares valued at about $835,000 in the first quarter.
• Microchip Technology reported better-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.
• Analysts remain broadly positive on MCHP, with an average rating of “Moderate Buy” and an average target price of $98.18, even as the stock traded down 6.6% to $87.93.

VCI Wealth Management LLC bought a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 12,923 shares of the semiconductor company's stock, valued at approximately $835,000.

Several other institutional investors have also bought and sold shares of the stock. EFG International AG bought a new position in shares of Microchip Technology during the fourth quarter valued at $29,000. Miller Capital Partners Inc. acquired a new stake in shares of Microchip Technology during the 4th quarter worth about $29,000. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Microchip Technology during the 4th quarter worth about $33,000. Reflection Asset Management bought a new position in Microchip Technology during the 4th quarter valued at about $33,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Microchip Technology by 4,663.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 513 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on MCHP. UBS Group restated a "buy" rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Susquehanna lifted their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research note on Friday, May 8th. Wells Fargo & Company boosted their target price on Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Needham & Company LLC increased their price target on Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Citigroup raised their price target on Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $98.18.

Microchip Technology Trading Down 6.6%

Shares of NASDAQ MCHP opened at $87.93 on Friday. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a 50-day moving average of $93.01 and a two-hundred day moving average of $78.37. The company has a market cap of $47.67 billion, a PE ratio of 418.73, a P/E/G ratio of 0.96 and a beta of 1.73. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the business posted $0.11 earnings per share. Microchip Technology'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. As a group, equities analysts expect that Microchip Technology Incorporated will post 2.66 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,667 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Sanghi sold 76,469 shares of Microchip Technology stock in a transaction dated 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 sale, the chief executive officer owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. The trade was a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 553,302 shares of company stock valued at $49,673,635 over the last quarter. Corporate insiders own 1.94% of the company's stock.

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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