Wealth Enhancement Trust Services Inc. Takes Position in Microchip Technology Incorporated $MCHP

Key Points

• Wealth Enhancement Trust Services established a new position in Microchip (NASDAQ:MCHP), buying 48,230 shares in Q4 valued at about $3.07 million.
• CEO Steve Sanghi sold 98,814 shares on Jan. 28 for roughly $7.96 million, even as institutional investors own about 91.51% of the company and insiders hold 1.94%.
• Microchip beat Q results with $0.44 EPS and $1.19B revenue (up 15.6% YoY); analysts maintain a Moderate Buy consensus and an average price target near $86 after several target upgrades.

Wealth Enhancement Trust Services Inc. purchased a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 48,230 shares of the semiconductor company's stock, valued at approximately $3,073,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in MCHP. Barrow Hanley Mewhinney & Strauss LLC boosted its stake in Microchip Technology by 25.7% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after acquiring an additional 2,257,932 shares during the last quarter. Holocene Advisors LP increased its position in shares of Microchip Technology by 77.0% in the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock worth $302,447,000 after purchasing an additional 2,049,249 shares during the last quarter. Rafferty Asset Management LLC raised its stake in shares of Microchip Technology by 41.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after purchasing an additional 1,803,945 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Microchip Technology by 18.8% in the 3rd quarter. Bank of America Corp DE now owns 11,419,944 shares of the semiconductor company's stock valued at $733,389,000 after purchasing an additional 1,803,831 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its position in shares of Microchip Technology by 255.7% during the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock worth $150,271,000 after purchasing an additional 1,534,829 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares of the company's stock, valued at approximately $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 1.94% of the company's stock.

Microchip Technology Stock Performance

MCHP stock opened at $78.76 on Friday. Microchip Technology Incorporated has a 1 year low of $37.41 and a 1 year high of $83.35. The stock has a market capitalization of $42.62 billion, a price-to-earnings ratio of -271.59, a PEG ratio of 1.03 and a beta of 1.49. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. The stock's fifty day moving average is $70.32 and its two-hundred day moving average is $67.07.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company's quarterly revenue was up 15.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were paid a $0.455 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. Microchip Technology's dividend payout ratio (DPR) is presently -627.59%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on MCHP. Truist Financial lifted their price target on Microchip Technology from $60.00 to $68.00 and gave the stock a "hold" rating in a research note on Friday, February 6th. Barclays started coverage on Microchip Technology in a research note on Thursday, February 12th. They set an "equal weight" rating and a $80.00 price objective on the stock. Cantor Fitzgerald lifted their target price on Microchip Technology from $85.00 to $100.00 and gave the stock an "overweight" rating in a research report on Monday, February 2nd. Wall Street Zen upgraded Microchip Technology from a "hold" rating to a "buy" rating in a report on Tuesday, March 31st. Finally, Piper Sandler upped their price target on Microchip Technology from $80.00 to $85.00 and gave the company an "overweight" rating in a research report on Thursday, January 15th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and an average target price of $86.00.

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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