Microchip Technology Incorporated (NASDAQ:MCHP) Plans $0.46 Quarterly Dividend

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Thursday, May 7th. Stockholders of record on Friday, May 22nd will be given a dividend of 0.455 per share by the semiconductor company on Friday, June 5th. This represents a c) dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, May 22nd.

Microchip Technology has raised its dividend payment by an average of 0.2%per year over the last three years and has increased its dividend annually for the last 23 consecutive years. Microchip Technology has a payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microchip Technology to earn $2.14 per share next year, which means the company should continue to be able to cover its $1.82 annual dividend with an expected future payout ratio of 85.0%.

Microchip Technology Stock Down 1.3%

Shares of Microchip Technology stock opened at $101.58 on Friday. The firm’s 50 day moving average price is $73.27 and its 200-day moving average price is $69.20. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $103.24. The company has a market cap of $54.97 billion, a P/E ratio of -350.28, a PEG ratio of 1.38 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. Microchip Technology’s revenue for the quarter was up 35.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts predict that Microchip Technology will post 1.16 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Steve Sanghi sold 76,469 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.58, for a total value of $7,155,969.02. Following the transaction, the chief executive officer owned 9,385,834 shares in the company, valued at approximately $878,326,345.72. This represents a 0.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 526,552 shares of company stock valued at $47,130,465 in the last 90 days. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Several large investors have recently made changes to their positions in MCHP. Winnow Wealth LLC purchased a new position in shares of Microchip Technology during the third quarter worth $25,000. Root Financial Partners LLC acquired a new stake in Microchip Technology during the 3rd quarter worth about $28,000. EFG International AG acquired a new stake in Microchip Technology during the 4th quarter worth about $29,000. Miller Capital Partners Inc. purchased a new position in shares of Microchip Technology during the 4th quarter valued at about $29,000. Finally, Quent Capital LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $32,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

About Microchip Technology

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.