NFJ Investment Group LLC purchased a new stake in Microchip Technology Incorporated (NASDAQ:MCHP – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 222,889 shares of the semiconductor company’s stock, valued at approximately $20,327,000.
A number of other hedge funds have also modified their holdings of MCHP. Resonant Capital Advisors LLC grew its holdings in Microchip Technology by 0.9% during the 1st quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock valued at $810,000 after buying an additional 118 shares during the last quarter. Apella Capital LLC raised its holdings in shares of Microchip Technology by 4.8% in the second quarter. Apella Capital LLC now owns 2,669 shares of the semiconductor company’s stock worth $225,000 after acquiring an additional 122 shares during the last quarter. Bridgewater Advisors Inc. lifted its position in shares of Microchip Technology by 4.2% in the second quarter. Bridgewater Advisors Inc. now owns 3,331 shares of the semiconductor company’s stock valued at $304,000 after acquiring an additional 133 shares in the last quarter. MCF Advisors LLC lifted its position in shares of Microchip Technology by 25.8% in the fourth quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 135 shares in the last quarter. Finally, Gagnon Securities LLC boosted its stake in shares of Microchip Technology by 0.5% during the fourth quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company’s stock valued at $1,731,000 after acquiring an additional 137 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.
Insider Activity
In related news, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company’s stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief operating officer owned 130,508 shares in the company, valued at $12,727,140.16. The trade was a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,837 shares of company stock valued at $847,338 in the last three months. Corporate insiders own 1.79% of the company’s stock.
Key Headlines Impacting Microchip Technology
- Positive Sentiment: Technical commentary suggests the recently weakened stock could make a contrarian rebound toward $85, based on historical recovery patterns. Deflated Microchip Technology Stock Could Target a Contrarian Move to $85
- Positive Sentiment: Microchip’s AI and data-center opportunities could support a recovery. Recent results also showed strong momentum, with revenue up 38% year over year and earnings exceeding analysts’ expectations; management’s next-quarter EPS guidance of $0.91 to $0.95 is another potential catalyst.
- Positive Sentiment: Cantor Fitzgerald reiterated an Overweight rating, while the broader analyst consensus remains Moderate Buy with an average price target of $98.85, implying meaningful upside from recent levels. Cantor Fitzgerald Reiterates Overweight Rating for Microchip Technology
- Positive Sentiment: The company’s quarterly dividend of $0.455 per share, representing a 2.4% annualized yield, may provide support for income-oriented investors.
- Neutral Sentiment: Former Microchip chief operating officer Richard Simoncic was appointed CEO of Menlo Microsystems. The move highlights the value of Microchip’s executive talent but does not directly change MCHP’s operations or outlook. Menlo Microsystems Appoints Richard Simoncic as Chief Executive Officer
- Negative Sentiment: Zacks Research downgraded MCHP from Strong Buy to Hold, reflecting limited near-term conviction after the recent decline.
- Negative Sentiment: Analysts caution that supply constraints, competitive pressure and MCHP’s elevated valuation could limit near-term gains despite its long-term AI growth prospects. Microchip Stock Drops 9% in a Month: Should You Buy, Sell or Hold it?
- Negative Sentiment: CFO James Eric Bjornholt sold 837 shares for approximately $67,178 at $80.26 each, reducing his direct stake by 2.63%. Although relatively small, the insider sale adds a modest negative signal. Microchip Technology CFO Sells 837 Shares
Analyst Upgrades and Downgrades
A number of analysts recently commented on the company. Cantor Fitzgerald reiterated an “overweight” rating and set a $125.00 price objective on shares of Microchip Technology in a research report on Monday. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Citigroup decreased their price target on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Zacks Research downgraded shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, Wells Fargo & Company cut their price objective on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research report on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.85.
Read Our Latest Report on MCHP
Microchip Technology Trading Down 1.6%
MCHP stock opened at $75.81 on Friday. The company has a market cap of $41.17 billion, a price-to-earnings ratio of 113.15, a PEG ratio of 0.54 and a beta of 1.76. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The business has a fifty day simple moving average of $84.67 and a 200-day simple moving average of $81.53. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The firm had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the firm earned $0.27 earnings per share. The firm’s revenue for the quarter was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, equities research analysts expect that Microchip Technology Incorporated will post 3.16 EPS for the current year.
Microchip Technology Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th 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 is Monday, August 24th. Microchip Technology’s dividend payout ratio (DPR) is 271.64%.
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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