Microchip Technology (NASDAQ:MCHP) CEO Steve Sanghi Sells 33,502 Shares of Stock

Key Points

• CEO Steve Sanghi sold 33,502 shares on April 30 at an average of $92.37 for about $3.09M under a pre-arranged Rule 10b5-1 plan, and also sold larger blocks on April 23 and May 1, bringing recent insider sales to roughly $47.1M while his stake declined 0.35% to 9,462,303 shares.
• Microchip shares traded at $95.25 (up 1.4%) with a market cap of $51.5B; the company reported revenue up 15.6% YoY and a slight EPS beat, pays a $0.455 quarterly dividend (≈1.9% yield), and holds a consensus analyst rating of "Moderate Buy" with an $86 price target.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) CEO Steve Sanghi sold 33,502 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $92.37, for a total value of $3,094,579.74. Following the sale, the chief executive officer directly owned 9,462,303 shares in the company, valued at $874,032,928.11. The trade was a 0.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Steve Sanghi also recently made the following trade(s):

• On Friday, May 1st, Steve Sanghi sold 76,469 shares of Microchip Technology stock. The stock was sold at an average price of $93.58, for a total value of $7,155,969.02.
• On Thursday, April 23rd, Steve Sanghi sold 416,581 shares of Microchip Technology stock. The stock was sold at an average price of $88.53, for a total value of $36,879,915.93.

Microchip Technology Trading Up 1.4%

NASDAQ MCHP traded up $1.30 during trading hours on Monday, hitting $95.25. 8,361,171 shares of the company were exchanged, compared to its average volume of 9,369,521. The stock has a 50-day moving average price of $71.81 and a 200 day moving average price of $68.44. Microchip Technology Incorporated has a 52 week low of $46.68 and a 52 week high of $96.22. The stock has a market cap of $51.54 billion, a PE ratio of -328.44, a price-to-earnings-growth ratio of 1.26 and a beta of 1.75. 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 (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.43 by $0.01. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.Microchip Technology's revenue was up 15.6% on a year-over-year basis. During the same period last year, the company earned $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Analysts forecast that Microchip Technology Incorporated will post 1.16 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were paid a dividend of $0.455 per share. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology's payout ratio is currently -627.59%.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of Microchip Technology by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock worth $4,683,824,000 after purchasing an additional 1,430,781 shares during the last quarter. State Street Corp lifted its stake in shares of Microchip Technology by 2.8% during the 4th quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock worth $1,839,153,000 after purchasing an additional 783,157 shares during the last quarter. Boston Partners lifted its stake in shares of Microchip Technology by 9.5% during the 3rd quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock worth $1,044,024,000 after purchasing an additional 1,406,885 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Microchip Technology by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock worth $977,638,000 after purchasing an additional 213,188 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in shares of Microchip Technology by 4.8% during the 4th quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock worth $955,298,000 after purchasing an additional 684,561 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Weiss Ratings raised shares of Microchip Technology from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, April 24th. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Wells Fargo & Company lifted their target price on Microchip Technology from $68.00 to $70.00 and gave the stock an "equal weight" rating in a research report on Friday, February 6th. Mizuho lifted their target price on Microchip Technology from $83.00 to $90.00 and gave the stock an "outperform" rating in a research report on Friday, February 6th. Finally, Barclays began coverage on Microchip Technology in a research report on Thursday, February 12th. They set an "equal weight" rating and a $80.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $86.00.

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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