Wellington Management Group LLP Sells 1,169,533 Shares of Microchip Technology Incorporated $MCHP

Key Points

• Wellington Management Group LLP sold over 1.16 million shares of Microchip Technology Incorporated (MCHP), reducing its stake by 94.2%, leaving it with only 71,647 shares valued at approximately $3.47 million.
• Multiple hedge funds have recently adjusted their holdings in Microchip, with notable investments and increases, while institutional investors now hold approximately 91.51% of the stock.
• Wall Street analysts have raised their price targets for Microchip Technology, with a consensus rating of "Moderate Buy" and an average target price of $76.58 following the company’s better-than-expected earnings report.

Wellington Management Group LLP trimmed its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 94.2% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 71,647 shares of the semiconductor company's stock after selling 1,169,533 shares during the quarter. Wellington Management Group LLP's holdings in Microchip Technology were worth $3,468,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in Microchip Technology by 0.6% during the first quarter. Vanguard Group Inc. now owns 69,302,614 shares of the semiconductor company's stock worth $3,354,940,000 after purchasing an additional 390,269 shares during the last quarter. Invesco Ltd. boosted its position in Microchip Technology by 63.0% during the first quarter. Invesco Ltd. now owns 16,707,031 shares of the semiconductor company's stock worth $808,787,000 after purchasing an additional 6,459,123 shares in the last quarter. Boston Partners lifted its position in shares of Microchip Technology by 35.3% in the first quarter. Boston Partners now owns 10,726,413 shares of the semiconductor company's stock valued at $517,082,000 after acquiring an additional 2,795,650 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Microchip Technology by 138.9% in the first quarter. Goldman Sachs Group Inc. now owns 8,834,550 shares of the semiconductor company's stock valued at $427,681,000 after acquiring an additional 5,136,154 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC lifted its position in Microchip Technology by 273.2% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 5,345,096 shares of the semiconductor company's stock worth $306,541,000 after buying an additional 3,912,895 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Stock Down 0.4%

NASDAQ MCHP traded down $0.25 during trading hours on Monday, reaching $65.00. 9,209,632 shares of the company's stock were exchanged, compared to its average volume of 9,431,667. The company's 50-day moving average is $69.34 and its two-hundred day moving average is $59.39. Microchip Technology Incorporated has a one year low of $34.13 and a one year high of $82.65. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The company has a market capitalization of $35.08 billion, a price-to-earnings ratio of -191.18, a price-to-earnings-growth ratio of 1.88 and a beta of 1.56.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same period in the prior year, the business earned $0.53 EPS. Microchip Technology's revenue for the quarter 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. On average, analysts forecast that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. Microchip Technology's dividend payout ratio is -535.29%.

Wall Street Analysts Forecast Growth

MCHP has been the subject of a number of recent research reports. The Goldman Sachs Group began coverage on Microchip Technology in a research note on Thursday, July 10th. They issued a "buy" rating and a $88.00 target price for the company. Morgan Stanley lifted their target price on Microchip Technology from $39.00 to $50.00 and gave the stock an "equal weight" rating in a report on Friday, May 9th. Susquehanna lifted their price target on Microchip Technology from $60.00 to $90.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Piper Sandler lifted their price objective on Microchip Technology from $65.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Finally, TD Cowen cut their price objective on Microchip Technology from $75.00 to $60.00 and set a "hold" rating for the company in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Microchip Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $76.58.

Insider Activity at Microchip Technology

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

About Microchip Technology

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.