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

Microchip Technology Incorporated (NASDAQ:MCHP) dropped 4.6% during mid-day trading on Friday following insider selling activity. The company traded as low as $55.12 and last traded at $55.37. Approximately 2,210,249 shares were traded during trading, a decline of 74% from the average daily volume of 8,552,172 shares. The stock had previously closed at $58.05.

Specifically, Director Karlton D. Johnson sold 494 shares of the stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $60.69, for a total transaction of $29,980.86. Following the transaction, the director now directly owns 3,468 shares in the company, valued at $210,472.92. This represents a 12.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Analyst Ratings Changes

Several research firms have commented on MCHP. Needham & Company LLC reissued a “buy” rating and set a $66.00 price target on shares of Microchip Technology in a research report on Friday, May 9th. Bank of America raised shares of Microchip Technology from an “underperform” rating to a “neutral” rating and set a $56.00 price target for the company in a research report on Friday, May 9th. Stifel Nicolaus increased their price target on shares of Microchip Technology from $60.00 to $70.00 and gave the company a “buy” rating in a research report on Friday, May 9th. B. Riley increased their price target on shares of Microchip Technology from $60.00 to $75.00 and gave the company a “buy” rating in a research report on Friday, May 9th. Finally, Truist Financial increased their price target on shares of Microchip Technology from $43.00 to $52.00 and gave the company a “hold” rating in a research report on Friday, May 9th. One analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $67.42.

Microchip Technology Stock Down 3.2%

The company has a current ratio of 2.25, a quick ratio of 1.23 and a debt-to-equity ratio of 1.12. The stock has a market capitalization of $30.27 billion, a PE ratio of 100.34 and a beta of 1.42. The company’s 50-day moving average is $48.07 and its 200 day moving average is $55.50.

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

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Shareholders of record on Thursday, May 22nd will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.24%. The ex-dividend date is Thursday, May 22nd. Microchip Technology’s dividend payout ratio is presently -18,200.00%.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors have recently bought and sold shares of the business. Federated Hermes Inc. raised its position in Microchip Technology by 0.5% during the 4th quarter. Federated Hermes Inc. now owns 39,298 shares of the semiconductor company’s stock worth $2,254,000 after buying an additional 209 shares during the last quarter. Northwest Bank & Trust Co grew its stake in shares of Microchip Technology by 3.0% during the 4th quarter. Northwest Bank & Trust Co now owns 7,392 shares of the semiconductor company’s stock worth $424,000 after purchasing an additional 217 shares during the period. Clearstead Trust LLC grew 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 purchasing an additional 224 shares during the period. Oregon Public Employees Retirement Fund grew its stake 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 purchasing an additional 230 shares during the period. Finally, Greenleaf Trust grew its stake 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 purchasing an additional 242 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

About Microchip Technology

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.