Y Intercept Hong Kong Ltd Acquires Shares of 48,871 Microchip Technology Incorporated $MCHP

Key Points

• Y Intercept Hong Kong Ltd opened a new position in Microchip Technology, buying 48,871 shares worth about $3.16 million in the first quarter.
• Institutional ownership remains very high, with 91.51% of Microchip Technology’s stock held by hedge funds and other institutional investors, while several funds recently increased their stakes.
• Analysts have turned more constructive on MCHP, with multiple firms raising price targets and the stock now carrying a Moderate Buy consensus and an average target of $98.18.

Y Intercept Hong Kong Ltd bought a new position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 48,871 shares of the semiconductor company's stock, valued at approximately $3,158,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock worth $827,000 after acquiring an additional 5,835 shares during the period. Geneos Wealth Management Inc. grew its position in Microchip Technology by 101.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after buying an additional 616 shares during the last quarter. Cresset Asset Management LLC increased its stake in Microchip Technology by 5.4% in the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after buying an additional 589 shares during the period. AXA S.A. increased its stake in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after buying an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina raised its position in Microchip Technology by 1.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock worth $17,348,000 after buying an additional 3,851 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently weighed in on MCHP shares. Wells Fargo & Company lifted their target price 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. Barclays lifted their price objective on Microchip Technology from $80.00 to $105.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Weiss Ratings raised Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, June 4th. Susquehanna boosted their price target on Microchip Technology from $95.00 to $120.00 and gave the stock a "positive" rating in a research note on Friday, May 8th. Finally, Needham & Company LLC increased their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Four analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Microchip Technology presently has an average rating of "Moderate Buy" and an average price target of $98.18.

Microchip Technology Stock Performance

Shares of MCHP traded down $4.22 during midday trading on Tuesday, hitting $83.36. 3,180,110 shares of the stock traded hands, compared to its average volume of 10,438,980. The firm has a market capitalization of $45.19 billion, a PE ratio of 395.44, a price-to-earnings-growth ratio of 0.87 and a beta of 1.74. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. Microchip Technology Incorporated has a 1-year low of $48.52 and a 1-year high of $105.91. The business's 50 day moving average price is $93.73 and its two-hundred day moving average price is $79.31.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings data 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 business 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 company posted $0.11 earnings per share. The company's quarterly revenue was up 35.1% compared to the same quarter last year. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities research analysts predict that Microchip Technology Incorporated will post 2.66 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology's dividend payout ratio (DPR) is 866.67%.

Insider Activity

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total transaction of $333,220.29. Following the sale, the chief financial officer directly owned 28,573 shares of the company's stock, valued at $2,596,428.51. The trade was a 11.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the completion of the sale, the chief operating officer owned 130,508 shares of the company's stock, valued at $12,727,140.16. The trade was a 3.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 553,302 shares of company stock worth $49,673,635 over the last three months. 1.94% of the stock is owned by insiders.

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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