Microchip Technology (NASDAQ:MCHP) COO Sells $467,200.00 in Stock

Key Points

• Microchip Technology COO Richard Simoncic sold 5,000 shares on May 22 at an average price of $93.44, totaling $467,200. After the sale, he still held 135,508 shares worth about $12.66 million.
• The stock moved higher and recent results were strong. Shares rose to $98.05, and the company reported quarterly EPS of $0.57 and revenue of $1.31 billion, both above analyst estimates.
• Microchip Technology continues to receive positive analyst and dividend support. Several analysts raised targets or ratings, with consensus at “Moderate Buy” and a $97.52 price target, while the company also declared a quarterly dividend of $0.455 per share.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) COO Richard Simoncic sold 5,000 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $93.44, for a total transaction of $467,200.00. Following the sale, the chief operating officer directly owned 135,508 shares in the company, valued at approximately $12,661,867.52. The trade was a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Microchip Technology Price Performance

Shares of Microchip Technology stock traded up $4.62 on Tuesday, hitting $98.05. The company's stock had a trading volume of 13,086,111 shares, compared to its average volume of 9,769,647. The company has a market capitalization of $53.06 billion, a price-to-earnings ratio of 466.93, a price-to-earnings-growth ratio of 0.98 and a beta of 1.75. 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 quick ratio of 1.18 and a current ratio of 2.09. The firm has a fifty day moving average price of $80.15 and a 200-day moving average price of $72.11.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued 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. The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.Microchip Technology's revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, sell-side analysts anticipate that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, May 22nd. Microchip Technology's payout ratio is presently 866.67%.

Institutional Investors Weigh In On Microchip Technology

A number of large investors have recently modified their holdings of MCHP. Wolverine Asset Management LLC increased its holdings in shares of Microchip Technology by 3,833.7% in the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company's stock valued at $2,416,000 after purchasing an additional 36,957 shares during the last quarter. Vanguard Group Inc. boosted its stake in Microchip Technology by 2.1% during the third quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company's stock worth $4,628,692,000 after buying an additional 1,507,554 shares during the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group acquired a new position in Microchip Technology during the fourth quarter worth $6,691,000. PNC Financial Services Group Inc. grew its holdings 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 valued at $13,447,000 after buying an additional 24,963 shares in the last quarter. Finally, Natixis Advisors LLC grew its holdings 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 valued at $79,184,000 after buying an additional 194,048 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. 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. Citigroup boosted their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Bank of America upgraded shares of Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price target for the company in a research report on Wednesday, January 28th. KeyCorp reaffirmed an "overweight" rating and issued a $85.00 price target on shares of Microchip Technology in a research note on Friday, February 6th. Finally, Argus upgraded Microchip Technology to a "strong-buy" rating in a report on Monday, February 9th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Microchip Technology has a consensus rating of "Moderate Buy" and a consensus price target of $97.52.

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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