Zweig DiMenna Associates LLC Makes New $7.74 Million Investment in Microchip Technology Incorporated $MCHP

Key Points

• Zweig DiMenna Associates LLC opened a new position in Microchip Technology, buying 121,500 shares valued at about $7.74 million in the fourth quarter.
• Microchip Technology reported stronger-than-expected quarterly results, with $0.57 EPS versus $0.50 expected and $1.31 billion in revenue, up 35.1% year over year.
• Despite the solid fundamentals and upbeat analyst coverage, the stock was down 1.4% on the day, while insiders recently sold shares and the company declared a quarterly dividend of $0.455 per share.

Zweig DiMenna Associates LLC bought a new position in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 121,500 shares of the semiconductor company's stock, valued at approximately $7,742,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Wolverine Asset Management LLC grew its position in Microchip Technology by 3,833.7% in the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock worth $2,416,000 after purchasing an additional 36,957 shares during the last quarter. Vanguard Group Inc. grew its position in Microchip Technology by 2.1% in the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company's stock worth $4,628,692,000 after purchasing an additional 1,507,554 shares during the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new position in Microchip Technology in the 4th quarter worth about $6,691,000. Natixis Advisors LLC grew its position in Microchip Technology by 18.7% in the 3rd quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company's stock worth $79,184,000 after purchasing an additional 194,048 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its position in Microchip Technology by 13.5% in the 3rd quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company's stock worth $13,447,000 after purchasing an additional 24,963 shares during the last quarter. Institutional investors own 91.51% of the company's stock.

Microchip Technology Stock Down 1.4%

MCHP stock opened at $94.65 on Friday. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91. The firm has a market cap of $51.31 billion, a PE ratio of 450.74, a P/E/G ratio of 1.01 and a beta of 1.75. The firm has a 50 day simple moving average of $82.04 and a 200 day simple moving average of $72.80. 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 (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating 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 analyst estimates of $1.26 billion. During the same period in the prior year, the business earned $0.11 earnings per share. The business's quarterly 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. Equities research analysts forecast that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

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 paid a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 annualized dividend and a yield of 1.9%. Microchip Technology's dividend payout ratio is currently 866.67%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Needham & Company LLC increased their price objective on shares of Microchip Technology from $84.00 to $120.00 and gave the company a "buy" rating in a 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. Weiss Ratings upgraded shares of Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 22nd. Finally, KeyCorp reiterated an "overweight" rating and issued a $85.00 price objective on shares of Microchip Technology in a report on Friday, February 6th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $97.52.

Insider Buying and Selling at Microchip Technology

In related news, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $93.44, for a total transaction of $467,200.00. Following the completion of the sale, the chief operating officer directly owned 135,508 shares of the company's stock, valued at $12,661,867.52. This represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the sale, the director directly owned 17,665 shares of the company's stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 548,302 shares of company stock valued at $49,186,035 in the last ninety days. Company insiders own 1.94% of the company's stock.

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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