Microchip Technology (NASDAQ:MCHP) CEO Steve Sanghi Sells 76,469 Shares

Key Points

• Microchip CEO Steve Sanghi sold 76,469 shares on May 1 at an average price of $93.58 for about $7.16 million under a pre-arranged Rule 10b5-1 plan, leaving him with 9,385,834 shares (a 0.81% ownership decrease).
• The May 1 sale follows prior disposals of 416,581 shares on April 23 and 33,502 shares on April 30, meaning Sanghi sold roughly 526,552 shares for about $47.1 million in late April/early May.
• Microchip shares have traded near a one-year high (~$95.25) after a quarter that beat EPS estimates ($0.44 vs. $0.43) with revenue up 15.6% year-over-year, and analysts hold an average rating of Moderate Buy with a $86 price target.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) CEO Steve Sanghi sold 76,469 shares of Microchip Technology stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total value of $7,155,969.02. Following the transaction, the chief executive officer directly owned 9,385,834 shares of the company's stock, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Thursday, April 30th, Steve Sanghi sold 33,502 shares of Microchip Technology stock. The stock was sold at an average price of $92.37, for a total value of $3,094,579.74.
• 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 Price Performance

MCHP traded up $1.30 during trading on Monday, reaching $95.25. 8,361,171 shares of the stock were exchanged, compared to its average volume of 9,369,521. The business's 50 day moving average price is $71.81 and its two-hundred day moving average price is $68.44. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The company has a market capitalization of $51.54 billion, a price-to-earnings ratio of -328.44, a P/E/G ratio of 1.26 and a beta of 1.75. Microchip Technology Incorporated has a 1 year low of $46.68 and a 1 year high of $96.22.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.43 by $0.01. The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business's revenue for the quarter was up 15.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, equities research analysts anticipate that Microchip Technology Incorporated will post 1.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

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

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently modified their holdings of the company. Winnow Wealth LLC acquired a new position in shares of Microchip Technology during the 3rd quarter valued at about $25,000. Root Financial Partners LLC acquired a new position in shares of Microchip Technology during the 3rd quarter valued at about $28,000. EFG International AG acquired a new position in shares of Microchip Technology during the 4th quarter valued at about $29,000. Miller Capital Partners Inc. acquired a new position in shares of Microchip Technology during the 4th quarter valued at about $29,000. Finally, Salomon & Ludwin LLC increased its stake in shares of Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company's stock valued at $32,000 after acquiring an additional 329 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on MCHP. BNP Paribas Exane raised Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 price objective on the stock in a research note on Thursday, January 22nd. Stifel Nicolaus set a $90.00 target price on shares of Microchip Technology in a report on Friday, February 6th. Susquehanna raised their price target on shares of Microchip Technology from $75.00 to $90.00 and gave the stock a "positive" rating in a research note on Thursday, January 22nd. Truist Financial lifted their price target on shares of Microchip Technology from $60.00 to $68.00 and gave the stock a "hold" rating in a report on Friday, February 6th. Finally, B. Riley Financial boosted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the company a "buy" rating in a research report on Monday, January 12th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $86.00.

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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