Victory Capital Management Inc. Increases Position in Microchip Technology Incorporated $MCHP

Key Points

• Victory Capital Management boosted its Microchip Technology stake by 11.4% in the fourth quarter, adding more than 1.36 million shares and bringing its position to about 13.38 million shares worth roughly $852.3 million.
• Microchip Technology reported a strong quarterly earnings beat, with EPS of $0.57 versus the $0.50 consensus and revenue of $1.31 billion, up 35.1% year over year. The company also issued Q1 2027 EPS guidance of $0.670 to $0.710.
• Analysts remain broadly positive on MCHP: several firms raised price targets, and the stock now carries a consensus Moderate Buy rating with an average target of $98.18.

Victory Capital Management Inc. increased its stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 11.4% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 13,375,920 shares of the semiconductor company's stock after buying an additional 1,369,832 shares during the quarter. Victory Capital Management Inc. owned about 2.47% of Microchip Technology worth $852,317,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in MCHP. Caitong International Asset Management Co. Ltd grew its holdings in shares of Microchip Technology by 4,663.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company's stock valued at $33,000 after buying an additional 513 shares during the last quarter. GoalVest Advisory LLC grew its holdings in shares of Microchip Technology by 174.0% during the fourth quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock valued at $35,000 after buying an additional 348 shares during the last quarter. Board of the Pension Protection Fund purchased a new stake in shares of Microchip Technology during the fourth quarter valued at $38,000. Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Microchip Technology during the fourth quarter valued at $38,000. Finally, Rossby Financial LCC grew its holdings in shares of Microchip Technology by 41.1% during the fourth quarter. Rossby Financial LCC now owns 628 shares of the semiconductor company's stock valued at $40,000 after buying an additional 183 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,667 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their position. The transaction was disclosed in a document filed 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 416,581 shares of the company's 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 owned 9,495,805 shares of the company's stock, valued at approximately $840,663,616.65. This trade represents a 4.20% 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. Insiders have sold 553,302 shares of company stock worth $49,673,635 in the last quarter. Company insiders own 1.94% of the company's stock.

Microchip Technology Stock Up 2.5%

MCHP opened at $95.24 on Friday. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91. 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 company has a 50-day moving average price of $87.85 and a 200 day moving average price of $75.61. The company has a market cap of $51.63 billion, a PE ratio of 453.55, a price-to-earnings-growth ratio of 0.98 and a beta of 1.73.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share 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 firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm earned $0.11 EPS. The company's revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Sell-side analysts expect that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, May 22nd. Microchip Technology's dividend payout ratio is 866.67%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Citigroup upped their price target on shares of Microchip Technology from $91.00 to $113.00 and gave the company a "buy" rating in a report on Friday, May 8th. Weiss Ratings raised shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, June 4th. Susquehanna upped their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a report on Friday, May 8th. Wells Fargo & Company upped their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Finally, Rosenblatt Securities upped their price target on shares of Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Microchip Technology presently has an average rating of "Moderate Buy" and an average price target of $98.18.

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.

Want to see what other hedge funds are holding MCHP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microchip Technology Incorporated (NASDAQ:MCHP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.