Microchip Technology (NASDAQ:MCHP) CFO Sells $333,220.29 in Stock

Microchip Technology Incorporated (NASDAQ:MCHP) CFO James Eric Bjornholt sold 3,667 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares of the company’s stock, valued at approximately $2,596,428.51. The trade was a 11.37% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Microchip Technology Trading Down 0.8%

Shares of NASDAQ MCHP opened at $96.04 on Friday. The stock has a market cap of $52.06 billion, a price-to-earnings ratio of 457.36, a PEG ratio of 1.02 and a beta of 1.75. The business has a 50 day simple moving average of $81.44 and a 200 day simple moving average of $72.65. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the company earned $0.11 EPS. The company’s revenue for the quarter was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, research analysts predict that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. Microchip Technology’s payout ratio is 866.67%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on MCHP. Wells Fargo & Company upped their target price on Microchip Technology from $75.00 to $95.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Needham & Company LLC upped their target price on Microchip Technology from $84.00 to $120.00 and gave the company a “buy” rating in a research note on Friday, May 8th. UBS Group upped their target price on Microchip Technology from $115.00 to $130.00 and gave the company a “buy” rating in a research note on Friday, May 8th. JPMorgan Chase & Co. upped their target price on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Finally, Wall Street Zen upgraded Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus target price of $97.52.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip’s presentation at TD Cowen’s Technology, Media & Telecom Conference kept investor focus on management’s latest outlook and execution, which can reinforce confidence in the company’s AI, data center, and industrial demand story. Microchip Technology Incorporated (MCHP) Presents at TD Cowen’s 54th Annual Technology, Media & Telecom Conference Transcript
• Positive Sentiment: New commentary highlighted Microchip as an AI semiconductor beneficiary, citing strong demand trends and improving operating leverage after its recent earnings beat, which supports the bullish case for the stock. Microchip Technology Incorporated (MCHP) Capitalizes on Data Center and AI Boom
• Positive Sentiment: Technical coverage said MCHP recently moved above its 20-day moving average, signaling short-term momentum and suggesting traders are seeing a bullish breakout. Microchip Technology (MCHP) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Analyst sentiment remains constructive, with several firms reiterating buy ratings and raising price targets after the earnings report, reflecting confidence in the company’s growth and outlook. Why These 3 Automotive & Industrial Chip Stocks Just Soared
• Neutral Sentiment: Microchip was also mentioned in broader “AI stock” and “AI chip” lists, which adds visibility but does not by itself change the company’s fundamentals. 5 AI Stocks to Buy as Markets Defy “Sell in May and Go Away” Adage
• Negative Sentiment: Recent insider selling by the CFO and COO may create some caution among investors, even though the trades were small and the CFO sale was made under a pre-arranged 10b5-1 plan. Insider Selling: Microchip Technology (NASDAQ:MCHP) CFO Sells 3,667 Shares of Stock

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Wolverine Asset Management LLC lifted its holdings in shares of Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock valued at $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Microchip Technology by 2.1% during the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock valued at $4,628,692,000 after purchasing an additional 1,507,554 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new position in shares of Microchip Technology during the 4th quarter valued at about $6,691,000. PNC Financial Services Group Inc. grew its holdings in shares of Microchip Technology by 13.5% during the third quarter. PNC Financial Services Group Inc. now owns 209,384 shares of the semiconductor company’s stock worth $13,447,000 after buying an additional 24,963 shares in the last quarter. Finally, Natixis Advisors LLC grew its holdings in shares of Microchip Technology by 18.7% during the third quarter. Natixis Advisors LLC now owns 1,233,018 shares of the semiconductor company’s stock worth $79,184,000 after buying an additional 194,048 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.