Wisconsin Capital Management LLC Lowers Stake in Microchip Technology Incorporated $MCHP

Key Points

• Wisconsin Capital Management cut its Microchip Technology stake by 35.7% in the fourth quarter, though the stock still represented about 0.9% of its portfolio.
• Microchip reported strong quarterly results, with EPS of $0.57 topping estimates and revenue rising 35.1% year over year to $1.31 billion.
• Analyst sentiment has turned more bullish, with multiple firms raising price targets and ratings; the consensus view is now a Moderate Buy with a target price of $97.52.

Wisconsin Capital Management LLC reduced its position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 35.7% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 27,531 shares of the semiconductor company's stock after selling 15,279 shares during the quarter. Microchip Technology makes up about 0.9% of Wisconsin Capital Management LLC's investment portfolio, making the stock its 28th largest holding. Wisconsin Capital Management LLC's holdings in Microchip Technology were worth $1,754,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Winnow Wealth LLC bought a new position in shares of Microchip Technology in the third quarter worth approximately $25,000. Root Financial Partners LLC bought a new position in shares of Microchip Technology in the third quarter worth approximately $28,000. Quent Capital LLC bought a new position in shares of Microchip Technology in the third quarter worth approximately $32,000. GoalVest Advisory LLC boosted its position in shares of Microchip Technology by 174.0% in the fourth quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 348 shares during the period. Finally, Board of the Pension Protection Fund bought a new position in shares of Microchip Technology in the fourth quarter worth approximately $38,000. 91.51% of the stock is currently owned by institutional investors.

Key Headlines Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip launched the EX-423 Evacuated Miniature Crystal Oscillator, a rugged low-power timing solution aimed at high-reliability markets such as GPS/GNSS, military radios, medical devices, seismic systems, and satellite communications. The new product broadens Microchip’s timing portfolio and could support longer-term growth in mission-critical applications. Article Title
• Positive Sentiment: Zacks Research upgraded Microchip Technology from “hold” to “strong-buy,” which can improve investor sentiment by reinforcing a more bullish view on the stock. Article Title
• Positive Sentiment: Cantor Fitzgerald reaffirmed its overweight rating on Microchip, adding to the constructive analyst tone around the name. Article Title
• Positive Sentiment: One report said Microchip’s price target was increased by 29.69% to $115.23, suggesting Wall Street sees additional upside from current levels. Article Title
• Neutral Sentiment: A market recap noted that Microchip stock underperformed some competitors on Wednesday, but the headline does not point to a new fundamental issue. Article Title
• Neutral Sentiment: Another article highlighted Microchip’s historical returns over the past decade, which is informative but unlikely to affect near-term trading. Article Title

Insider Buying and Selling at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of the firm's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total value of $36,879,915.93. Following the completion of the transaction, the chief executive officer directly 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 526,552 shares of company stock valued at $47,130,465 over the last ninety days. Company insiders own 1.94% of the company's stock.

Microchip Technology Stock Performance

Shares of MCHP opened at $93.85 on Monday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a 50 day simple moving average of $76.12 and a two-hundred day simple moving average of $70.55. The firm has a market cap of $50.79 billion, a P/E ratio of 446.93, a price-to-earnings-growth ratio of 1.15 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the firm posted $0.11 EPS. The company's revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities analysts expect that Microchip Technology Incorporated will post 2.21 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on MCHP shares. Wells Fargo & Company upped their price target on shares of Microchip Technology from $75.00 to $95.00 and gave the stock an "equal weight" rating in a research report on Friday, May 8th. Truist Financial upped their price target on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Susquehanna upped their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their price objective on shares of Microchip Technology from $95.00 to $120.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Finally, Bank of America raised shares of Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price objective for the company in a report on Wednesday, January 28th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $97.52.

Microchip Technology 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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