Davis R M Inc. Lowers Stake in Microchip Technology Incorporated $MCHP

Davis R M Inc. trimmed its holdings in Microchip Technology Incorporated (NASDAQ:MCHP) by 26.2% in the third quarter, according to its most recent disclosure with the SEC. The fund owned 174,706 shares of the semiconductor company’s stock after selling 62,165 shares during the period. Davis R M Inc.’s holdings in Microchip Technology were worth $11,220,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Florida Trust Wealth Management Co raised its stake in Microchip Technology by 3.3% during the 3rd quarter. Florida Trust Wealth Management Co now owns 4,890 shares of the semiconductor company’s stock valued at $314,000 after acquiring an additional 157 shares during the last quarter. Clean Yield Group raised its stake in shares of Microchip Technology by 9.4% during the third quarter. Clean Yield Group now owns 1,890 shares of the semiconductor company’s stock worth $121,000 after purchasing an additional 163 shares during the last quarter. Slagle Financial LLC lifted its holdings in shares of Microchip Technology by 0.3% during the third quarter. Slagle Financial LLC now owns 64,485 shares of the semiconductor company’s stock worth $4,141,000 after purchasing an additional 168 shares during the period. Global Trust Asset Management LLC grew its position in Microchip Technology by 2.4% in the 3rd quarter. Global Trust Asset Management LLC now owns 7,263 shares of the semiconductor company’s stock valued at $466,000 after buying an additional 169 shares during the last quarter. Finally, Bollard Group LLC increased its stake in Microchip Technology by 5.8% in the 2nd quarter. Bollard Group LLC now owns 3,178 shares of the semiconductor company’s stock valued at $224,000 after buying an additional 173 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Insider Activity

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.94% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have recently commented on MCHP. TD Cowen reduced their target price on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research note on Friday, November 7th. Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a report on Wednesday, February 4th. Weiss Ratings upgraded shares of Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 6th. Mizuho lifted their price objective on Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a report on Friday, February 6th. Finally, KeyCorp reiterated an “overweight” rating and set a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $86.00.

Microchip Technology Stock Performance

Shares of MCHP opened at $74.64 on Monday. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $83.35. The stock has a market cap of $40.39 billion, a P/E ratio of -257.38, a PEG ratio of 1.88 and a beta of 1.45. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. The company has a 50-day moving average of $73.81 and a two-hundred day moving average of $66.59.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the business earned $0.20 earnings per share. The company’s quarterly revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, February 23rd. Microchip Technology’s payout ratio is -627.59%.

Microchip Technology 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.