Washington Capital Management Inc. Purchases 6,975 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Washington Capital Management Inc. increased its holdings in Microchip Technology by 49.2%, now owning a total of 21,145 shares worth $1,488,000, making it the firm's 12th largest holding.
• Recent insider trading showed that CFO James Eric Bjornholt sold 7,356 shares, resulting in a 19.69% decrease in ownership, while Director Matthew W. Chapman sold 10,000 shares with a 24.59% reduction in their stake.
• Analysts' price targets for Microchip Technology vary significantly, with some lowering their estimates while others increase them, resulting in an average target price of $75.75 and a general consensus rating of "Moderate Buy".

Washington Capital Management Inc. grew its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 49.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 21,145 shares of the semiconductor company's stock after acquiring an additional 6,975 shares during the period. Microchip Technology accounts for 1.1% of Washington Capital Management Inc.'s portfolio, making the stock its 12th largest holding. Washington Capital Management Inc.'s holdings in Microchip Technology were worth $1,488,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. MCF Advisors LLC raised its stake in shares of Microchip Technology by 211.2% in the second quarter. MCF Advisors LLC now owns 473 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 321 shares during the last quarter. Carderock Capital Management Inc. acquired a new stake in Microchip Technology during the 2nd quarter worth $39,000. Painted Porch Advisors LLC acquired a new stake in Microchip Technology during the 2nd quarter worth $40,000. Garde Capital Inc. acquired a new stake in Microchip Technology during the 1st quarter worth $30,000. Finally, WPG Advisers LLC acquired a new stake in Microchip Technology during the 1st quarter worth $40,000. Institutional investors own 91.51% of the company's stock.

Insider Transactions at Microchip Technology

In other news, CFO James Eric Bjornholt sold 7,356 shares of the stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.72, for a total transaction of $505,504.32. Following the completion of the transaction, the chief financial officer directly owned 30,010 shares in the company, valued at $2,062,287.20. This represents a 19.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the transaction, the director owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. This represents a 24.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.94% of the company's stock.

Analysts Set New Price Targets

A number of research firms have commented on MCHP. TD Cowen lowered their target price on shares of Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a report on Friday, August 8th. Needham & Company LLC boosted their price target on shares of Microchip Technology from $66.00 to $77.00 and gave the company a "buy" rating in a report on Friday, August 8th. Piper Sandler boosted their price target on shares of Microchip Technology from $65.00 to $80.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Evercore ISI boosted their price target on shares of Microchip Technology from $69.00 to $83.00 and gave the company an "outperform" rating in a report on Thursday, June 12th. Finally, Zacks Research lowered shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 18th. One analyst has rated the stock with a Strong Buy rating, thirteen 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 presently has an average rating of "Moderate Buy" and an average target price of $75.75.

Microchip Technology Trading Down 0.6%

MCHP opened at $64.42 on Monday. The stock has a market capitalization of $34.77 billion, a P/E ratio of -189.47, a P/E/G ratio of 1.85 and a beta of 1.56. Microchip Technology Incorporated has a 12 month low of $34.13 and a 12 month high of $81.64. The firm's fifty day simple moving average is $66.30 and its 200 day simple moving average is $60.29. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The business had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.05 billion. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm's revenue was down 13.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.53 EPS. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. As a group, research analysts anticipate that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's payout ratio is currently -535.29%.

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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