Microchip Technology Incorporated (NASDAQ:MCHP) Increases Dividend to $0.45 Per Share

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) declared a quarterly dividend on Monday, May 6th, RTT News reports. Investors of record on Wednesday, May 22nd will be given a dividend of 0.452 per share by the semiconductor company on Wednesday, June 5th. This represents a $1.81 annualized dividend and a yield of 1.93%. This is a boost from Microchip Technology's previous quarterly dividend of $0.45.

Microchip Technology has raised its dividend payment by an average of 29.3% per year over the last three years and has increased its dividend annually for the last 23 consecutive years. Microchip Technology has a payout ratio of 40.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Microchip Technology to earn $2.72 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 66.2%.

Microchip Technology Stock Performance

NASDAQ MCHP traded up $2.40 during midday trading on Monday, hitting $93.76. The company had a trading volume of 7,233,477 shares, compared to its average volume of 5,624,807. The firm has a fifty day simple moving average of $88.27 and a two-hundred day simple moving average of $85.25. The stock has a market cap of $50.67 billion, a price-to-earnings ratio of 21.91, a P/E/G ratio of 2.79 and a beta of 1.60. The company has a quick ratio of 0.58, a current ratio of 0.98 and a debt-to-equity ratio of 0.57. Microchip Technology has a fifty-two week low of $68.75 and a fifty-two week high of $94.63.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period in the previous year, the company posted $1.56 earnings per share. The company's quarterly revenue was down 40.6% compared to the same quarter last year. Equities analysts forecast that Microchip Technology will post 4.64 earnings per share for the current fiscal year.

Insider Transactions at Microchip Technology

In related news, Director Karlton D. Johnson sold 370 shares of Microchip Technology stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total transaction of $31,080.00. Following the transaction, the director now owns 1,789 shares of the company's stock, valued at approximately $150,276. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at $2,759,722.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Karlton D. Johnson sold 370 shares of the stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $84.00, for a total value of $31,080.00. Following the sale, the director now directly owns 1,789 shares of the company's stock, valued at $150,276. The disclosure for this sale can be found here. Corporate insiders own 2.07% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on MCHP shares. Needham & Company LLC boosted their price target on shares of Microchip Technology from $85.00 to $90.00 and gave the company a "buy" rating in a report on Friday, February 2nd. TD Cowen boosted their price target on Microchip Technology from $75.00 to $80.00 and gave the company a "market perform" rating in a research note on Friday, February 2nd. Wolfe Research upgraded Microchip Technology from a "peer perform" rating to an "outperform" rating and set a $105.00 price objective for the company in a research note on Thursday, January 18th. Rosenblatt Securities reiterated a "buy" rating and set a $100.00 target price on shares of Microchip Technology in a research report on Tuesday, January 30th. Finally, Stifel Nicolaus raised their price objective on shares of Microchip Technology from $98.00 to $102.00 and gave the stock a "buy" rating in a report on Wednesday, May 1st. Six analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $92.75.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells 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 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.