Richard Simoncic Sells 5,000 Shares of Microchip Technology (NASDAQ:MCHP) Stock

Key Points

• Microchip Technology COO Richard Simoncic sold 5,000 shares on June 4 at an average price of $97.52, totaling about $487,600. After the sale, he still held 130,508 shares valued at roughly $12.7 million.
• The stock rose 3.4% to $91.37 amid heavy trading volume, above its recent average, and remains well above its 50-day and 200-day moving averages.
• Microchip reported stronger-than-expected quarterly results, with EPS of $0.57 and revenue of $1.31 billion, and analysts currently hold a consensus rating of Moderate Buy with a target price of $97.52.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) COO Richard Simoncic sold 5,000 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer owned 130,508 shares of the company's stock, valued at approximately $12,727,140.16. This represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Microchip Technology Stock Up 3.4%

Shares of MCHP stock traded up $3.03 on Monday, hitting $91.37. The stock had a trading volume of 13,896,881 shares, compared to its average volume of 9,976,158. The business has a 50 day moving average of $85.00 and a 200 day moving average of $74.33. The stock has a market cap of $49.53 billion, a price-to-earnings ratio of 435.12, a price-to-earnings-growth ratio of 0.93 and a beta of 1.73. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm's revenue for the quarter was up 35.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, analysts expect that Microchip Technology Incorporated will post 2.58 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.455 dividend. The ex-dividend date was Friday, May 22nd. This represents a $1.82 annualized dividend and a dividend yield of 2.0%. Microchip Technology's dividend payout ratio is currently 866.67%.

Hedge Funds Weigh In On Microchip Technology

Several large investors have recently modified their holdings of MCHP. Norges Bank bought a new position in shares of Microchip Technology in the fourth quarter valued at approximately $664,564,000. Barclays PLC boosted its position in shares of Microchip Technology by 66.5% in the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company's stock valued at $891,881,000 after acquiring an additional 5,590,210 shares during the period. Barrow Hanley Mewhinney & Strauss LLC boosted its position in shares of Microchip Technology by 25.7% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company's stock valued at $709,506,000 after acquiring an additional 2,257,932 shares during the period. Holocene Advisors LP lifted its position in Microchip Technology by 77.0% during the third quarter. Holocene Advisors LP now owns 4,709,538 shares of the semiconductor company's stock valued at $302,447,000 after purchasing an additional 2,049,249 shares during the last quarter. Finally, Rafferty Asset Management LLC lifted its position in Microchip Technology by 41.0% during the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company's stock valued at $436,559,000 after purchasing an additional 1,803,945 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday. Rosenblatt Securities raised their price objective on shares of Microchip Technology from $115.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Truist Financial raised their price objective on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a "hold" rating in a report on Friday, May 8th. Barclays raised their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Finally, Wall Street Zen upgraded shares of Microchip Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $97.52.

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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