Microchip Technology (NASDAQ:MCHP) Hits New 1-Year High Following Dividend Announcement

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) reached a new 52-week high on Tuesday following a dividend announcement from the company. The stock traded as high as $96.14 and last traded at $92.72, with a volume of 832035 shares traded. The stock had previously closed at $93.76.

The newly announced dividend which will be paid on Wednesday, June 5th. Shareholders of record on Wednesday, May 22nd will be paid a dividend of $0.452 per share. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.96%. The ex-dividend date of this dividend is Tuesday, May 21st. Microchip Technology’s payout ratio is currently 42.06%.

Wall Street Analyst Weigh In

MCHP has been the topic of a number of research reports. Citigroup raised their price objective on shares of Microchip Technology from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Tuesday. Piper Sandler restated a “neutral” rating and issued a $90.00 price objective (up from $80.00) on shares of Microchip Technology in a research note on Tuesday. Needham & Company LLC lifted their target price on Microchip Technology from $90.00 to $100.00 and gave the company a “buy” rating in a research report on Tuesday. Truist Financial upped their price target on Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price objective on shares of Microchip Technology in a research report on Tuesday, January 30th. Six analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $98.47.

Microchip Technology Trading Down 1.8 %

The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58. The stock has a market cap of $49.75 billion, a P/E ratio of 21.51, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. The stock’s 50-day moving average is $88.45 and its two-hundred day moving average is $85.37.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, meeting the consensus estimate of $0.57. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The business’s revenue was down 40.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.56 EPS. Equities research analysts anticipate that Microchip Technology Incorporated will post 4.64 EPS for the current year.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the transaction, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 2.07% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Norges Bank purchased a new position in shares of Microchip Technology in the 4th quarter worth approximately $672,196,000. Mizuho Markets Americas LLC purchased a new stake in Microchip Technology in the third quarter worth $225,800,000. Truist Financial Corp lifted its position in shares of Microchip Technology by 324.0% during the fourth quarter. Truist Financial Corp now owns 1,815,013 shares of the semiconductor company’s stock worth $163,678,000 after purchasing an additional 1,386,924 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Microchip Technology by 17.2% during the first quarter. Van ECK Associates Corp now owns 6,068,311 shares of the semiconductor company’s stock valued at $544,388,000 after purchasing an additional 891,297 shares during the period. Finally, Corient Private Wealth LLC grew its holdings in shares of Microchip Technology by 76.6% in the fourth quarter. Corient Private Wealth LLC now owns 2,043,484 shares of the semiconductor company’s stock worth $184,251,000 after purchasing an additional 886,068 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.