Insider Selling: Microchip Technology (NASDAQ:MCHP) Director Sells 3,000 Shares of Stock

Key Points

• Insider sale: Microchip Technology director Matthew Chapman sold 3,000 shares at an average price of $97.52, totaling $292,560. After the transaction, he still owned 17,665 shares.
• Strong quarterly results: The company reported Q1 EPS of $0.57, beating expectations, and revenue of $1.31 billion, up 35.1% year over year. It also issued Q1 2027 guidance of $0.67 to $0.71 EPS.
• Analyst and dividend backdrop: Wall Street remains constructive, with a consensus rating of Moderate Buy and an average target price of $97.52. Microchip also declared a quarterly dividend of $0.455 per share, or $1.82 annually, for a 1.9% yield.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) Director Matthew Chapman sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the transaction, the director directly owned 17,665 shares of the company's stock, valued at $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website.

Microchip Technology Stock Performance

MCHP traded down $1.39 during trading on Friday, reaching $94.65. 11,360,499 shares of the company's stock were exchanged, compared to its average volume of 9,794,168. Microchip Technology Incorporated has a 1 year low of $48.52 and a 1 year high of $105.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The stock has a market capitalization of $51.31 billion, a P/E ratio of 450.74, a price-to-earnings-growth ratio of 1.02 and a beta of 1.75. The company's fifty day simple moving average is $81.44 and its 200-day simple moving average is $72.65.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping 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 company 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. Microchip Technology's revenue for the quarter 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. As a group, research analysts predict that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

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

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in MCHP. Norges Bank acquired a new stake in shares of Microchip Technology during the 4th quarter worth approximately $664,564,000. Barclays PLC grew its stake in Microchip Technology by 66.5% in the 4th quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after acquiring an additional 5,590,210 shares during the period. Barrow Hanley Mewhinney & Strauss LLC grew its stake in Microchip Technology by 25.7% in 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 period. Holocene Advisors LP grew its stake in Microchip Technology by 77.0% in the 3rd quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after acquiring an additional 2,049,249 shares during the period. Finally, Rafferty Asset Management LLC grew its stake in 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 acquiring an additional 1,803,945 shares during the period. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on MCHP shares. Truist Financial raised 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 raised 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. Argus raised shares of Microchip Technology to a "strong-buy" rating in a research note on Monday, February 9th. Zacks Research raised shares of Microchip Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Finally, UBS Group raised their price objective on shares of Microchip Technology from $115.00 to $130.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $97.52.

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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