Microchip Technology Incorporated Plans Quarterly Dividend of $0.46 (NASDAQ:MCHP)

Key Points

• Microchip declared a quarterly dividend of $0.455 per share, payable June 5 to shareholders of record on May 22 (ex-dividend May 22), implying about a 1.8% yield; the company has raised its dividend for 23 consecutive years and carries a payout ratio around 72%.
• Q1 results beat expectations: Microchip reported $0.57 EPS vs. $0.50 expected and revenue of $1.31 billion (vs. $1.26B), a 35% year‑over‑year increase, and guided Q1 FY2027 EPS to $0.67–$0.71.
• Insider selling activity: CEO Steve Sanghi sold 76,469 shares for roughly $7.16 million under a pre‑arranged Rule 10b5‑1 plan; insiders have sold 526,552 shares over the last 90 days and currently own about 1.94% of the stock.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Shareholders of record on Friday, May 22nd will be given a dividend of 0.455 per share by the semiconductor company on Friday, June 5th. This represents a c) dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, May 22nd.

Microchip Technology has raised its dividend payment by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 23 consecutive years. Microchip Technology has a dividend payout ratio of 72.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $2.14 per share next year, which means the company should continue to be able to cover its $1.82 annual dividend with an expected future payout ratio of 85.0%.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $101.58 on Friday. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $103.24. The company has a market cap of $54.97 billion, a P/E ratio of -350.28, a P/E/G ratio of 1.38 and a beta of 1.75. The firm's 50 day moving average is $73.27 and its two-hundred day moving average is $69.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its 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 positive return on equity of 7.16% and a negative net margin of 1.57%.The business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the business earned $0.11 EPS. The company's revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Analysts expect that Microchip Technology will post 1.16 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Steve Sanghi sold 76,469 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. This trade represents a 0.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 526,552 shares of company stock worth $47,130,465. 1.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MCHP. AQR Capital Management LLC boosted its stake 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 valued at $827,000 after acquiring an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after acquiring an additional 616 shares during the last quarter. Cresset Asset Management LLC boosted its stake in Microchip Technology by 5.4% during the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after acquiring an additional 589 shares during the last quarter. AXA S.A. boosted its stake in Microchip Technology by 21.3% during the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after acquiring an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake 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 valued at $17,348,000 after acquiring an additional 3,851 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.

About Microchip Technology

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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