Capital Research Global Investors Cuts Position in Microchip Technology Incorporated $MCHP

Capital Research Global Investors decreased its stake in Microchip Technology Incorporated (NASDAQ:MCHP) by 87.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,887,854 shares of the semiconductor company’s stock after selling 13,762,481 shares during the period. Capital Research Global Investors’ holdings in Microchip Technology were worth $121,238,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in MCHP. Vanguard Group Inc. lifted its position 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 acquiring an additional 1,507,554 shares during the period. State Street Corp increased its stake in Microchip Technology by 8.5% in the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after purchasing an additional 2,489,258 shares in the last quarter. Invesco Ltd. raised its holdings in Microchip Technology by 10.4% during the second quarter. Invesco Ltd. now owns 18,452,546 shares of the semiconductor company’s stock worth $1,298,506,000 after purchasing an additional 1,745,515 shares during the last quarter. Geode Capital Management LLC boosted its position in Microchip Technology by 2.4% during the second quarter. Geode Capital Management LLC now owns 14,842,341 shares of the semiconductor company’s stock worth $1,040,544,000 after purchasing an additional 343,210 shares in the last quarter. Finally, Boston Partners grew its holdings in Microchip Technology by 38.2% in the second quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock valued at $1,041,868,000 after purchasing an additional 4,101,034 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Price Performance

NASDAQ:MCHP opened at $65.79 on Thursday. Microchip Technology Incorporated has a 12-month low of $34.13 and a 12-month high of $83.35. The firm has a market cap of $35.60 billion, a price-to-earnings ratio of -226.86, a price-to-earnings-growth ratio of 1.64 and a beta of 1.45. The company’s 50-day moving average is $74.29 and its two-hundred day moving average is $66.69. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The company’s revenue was up 15.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Research analysts expect 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 was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Monday, February 23rd. Microchip Technology’s dividend payout ratio is currently -627.59%.

Insider Activity

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

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on MCHP shares. Jefferies Financial Group reaffirmed a “hold” rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Mizuho lifted their target price on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. Truist Financial upped their price target on shares of Microchip Technology from $60.00 to $68.00 and gave the company a “hold” rating in a report on Friday, February 6th. Susquehanna raised their price objective on shares of Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Finally, Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 24th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $86.00.

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.