Microchip Technology (NASDAQ:MCHP) Trading Down 4.6% Following Insider Selling

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report)'s stock price fell 4.6% on Friday after an insider sold shares in the company. The stock traded as low as $55.12 and last traded at $55.37. 2,210,249 shares changed hands during mid-day trading, a decline of 74% from the average session volume of 8,552,172 shares. The stock had previously closed at $58.05.

Specifically, Director Karlton D. Johnson sold 494 shares of the firm's stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $60.69, for a total transaction of $29,980.86. Following the sale, the director now owns 3,468 shares of the company's stock, valued at $210,472.92. This trade represents a 12.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. UBS Group raised their target price on shares of Microchip Technology from $55.00 to $60.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Wall Street Zen lowered shares of Microchip Technology from a "hold" rating to a "sell" rating in a report on Monday, February 10th. Stifel Nicolaus upped their target price on shares of Microchip Technology from $60.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Rosenblatt Securities reiterated a "buy" rating and set a $70.00 target price on shares of Microchip Technology in a report on Tuesday, March 4th. Finally, Needham & Company LLC restated a "buy" rating and issued a $66.00 price target on shares of Microchip Technology in a report on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Microchip Technology has an average rating of "Moderate Buy" and an average price target of $67.42.

Microchip Technology Stock Down 5.4%

The firm has a market capitalization of $29.58 billion, a P/E ratio of 98.24 and a beta of 1.42. The firm's 50 day moving average is $48.03 and its two-hundred day moving average is $55.63. The company has a debt-to-equity ratio of 1.12, a current ratio of 2.25 and a quick ratio of 1.23.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The semiconductor company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.01. The firm had revenue of $970.50 million during the quarter, compared to analysts' expectations of $962.86 million. Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. The company's revenue for the quarter was down 26.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.57 earnings per share. Research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd will be given a $0.455 dividend. The ex-dividend date of this dividend is Thursday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 3.31%. Microchip Technology's payout ratio is -18,200.00%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Federated Hermes Inc. lifted its holdings in Microchip Technology by 0.5% during the 4th quarter. Federated Hermes Inc. now owns 39,298 shares of the semiconductor company's stock valued at $2,254,000 after purchasing an additional 209 shares during the last quarter. Northwest Bank & Trust Co raised its position in shares of Microchip Technology by 3.0% in the fourth quarter. Northwest Bank & Trust Co now owns 7,392 shares of the semiconductor company's stock valued at $424,000 after purchasing an additional 217 shares during the period. Clearstead Trust LLC lifted its stake in shares of Microchip Technology by 10.5% during the 1st quarter. Clearstead Trust LLC now owns 2,356 shares of the semiconductor company's stock worth $114,000 after buying an additional 224 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in shares of Microchip Technology by 0.5% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 46,235 shares of the semiconductor company's stock worth $2,238,000 after buying an additional 230 shares during the period. Finally, Greenleaf Trust boosted its holdings in shares of Microchip Technology by 1.0% during the 1st quarter. Greenleaf Trust now owns 24,933 shares of the semiconductor company's stock worth $1,207,000 after buying an additional 242 shares during the period. 91.51% of the stock is currently owned by institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.

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