VELA Investment Management LLC Trims Stake in Microchip Technology Incorporated $MCHP

Key Points

• VELA Investment Management LLC reduced its stake in Microchip Technology by 35.3% in Q2, bringing its total holdings to 8,641 shares valued at $608,000.
• Microchip Technology reported earnings of $0.27 per share, exceeding estimates, despite a 13.3% decline in revenue year-over-year.
• The company recently announced a quarterly dividend of $0.455 per share, resulting in an annualized total of $1.82 and a dividend yield of 2.8%.

VELA Investment Management LLC reduced its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.3% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,641 shares of the semiconductor company's stock after selling 4,706 shares during the period. VELA Investment Management LLC's holdings in Microchip Technology were worth $608,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in MCHP. Sagespring Wealth Partners LLC lifted its holdings in shares of Microchip Technology by 2.7% in the 2nd quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company's stock worth $407,000 after acquiring an additional 154 shares during the last quarter. Mechanics Financial Corp lifted its holdings in shares of Microchip Technology by 3.4% in the 2nd quarter. Mechanics Financial Corp now owns 5,014 shares of the semiconductor company's stock worth $353,000 after acquiring an additional 167 shares during the last quarter. Global X Japan Co. Ltd. lifted its holdings in shares of Microchip Technology by 0.4% in the 2nd quarter. Global X Japan Co. Ltd. now owns 45,705 shares of the semiconductor company's stock worth $3,216,000 after acquiring an additional 174 shares during the last quarter. Pinnacle Bancorp Inc. boosted its position in Microchip Technology by 18.9% in the 2nd quarter. Pinnacle Bancorp Inc. now owns 1,206 shares of the semiconductor company's stock valued at $85,000 after buying an additional 192 shares during the period. Finally, Grimes & Company Inc. boosted its position in Microchip Technology by 4.3% in the 2nd quarter. Grimes & Company Inc. now owns 5,237 shares of the semiconductor company's stock valued at $369,000 after buying an additional 217 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Price Performance

Shares of MCHP opened at $65.35 on Friday. The company has a 50 day moving average price of $65.12 and a 200-day moving average price of $61.41. Microchip Technology Incorporated has a fifty-two week low of $34.13 and a fifty-two week high of $79.44. The stock has a market capitalization of $35.27 billion, a PE ratio of -192.21, a PEG ratio of 1.87 and a beta of 1.55. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same quarter in the prior year, the company earned $0.53 EPS. The company's revenue was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Equities analysts predict that Microchip Technology Incorporated will post 1.03 earnings per share 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 paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Friday, August 22nd. Microchip Technology's payout ratio is -535.29%.

Analyst Ratings Changes

Several research firms have issued reports on MCHP. TD Cowen lowered their price objective on shares of Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Stifel Nicolaus boosted their price objective on shares of Microchip Technology from $70.00 to $82.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Weiss Ratings reissued a "sell (d+)" rating on shares of Microchip Technology in a research report on Wednesday, October 8th. Wells Fargo & Company began coverage on shares of Microchip Technology in a research report on Monday, September 15th. They issued an "equal weight" rating and a $60.00 price objective for the company. Finally, Citigroup boosted their price objective on shares of Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a research report on Monday, July 7th. One investment 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 given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $75.75.

Insider Activity at Microchip Technology

In related news, Director Matthew W. Chapman sold 10,000 shares of the business's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the completion of the transaction, the director owned 30,665 shares in the company, valued at $2,092,886.25. The trade was a 24.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO James Eric Bjornholt sold 7,356 shares of the business'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 transaction, the chief financial officer owned 30,010 shares of the company's stock, valued at approximately $2,062,287.20. This trade represents a 19.69% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.94% of the company's stock.

Microchip Technology Company 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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