Microchip Technology (NASDAQ:MCHP) Hits New 12-Month High After Dividend Announcement

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price reached a new 52-week high on Tuesday following a dividend announcement from the company. The company traded as high as $96.14 and last traded at $92.72, with a volume of 832035 shares. The stock had previously closed at $93.76.

The newly announced dividend which will be paid on Wednesday, June 5th. Stockholders of record on Wednesday, May 22nd will be issued a $0.452 dividend. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.94%. Microchip Technology’s dividend payout ratio (DPR) is presently 42.06%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on MCHP shares. Piper Sandler reaffirmed a “neutral” rating and issued a $90.00 price target (up from $80.00) on shares of Microchip Technology in a report on Tuesday. Wolfe Research upgraded Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 price target on the stock in a report on Thursday, January 18th. UBS Group dropped their price target on Microchip Technology from $105.00 to $95.00 and set a “buy” rating on the stock in a research report on Friday, February 2nd. Truist Financial boosted their price target on Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday. Finally, Stifel Nicolaus increased their target price on Microchip Technology from $98.00 to $102.00 and gave the company a “buy” rating in a research note on Wednesday, May 1st. Six equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $95.75.

Microchip Technology Stock Performance

The company has a market capitalization of $50.26 billion, a price-to-earnings ratio of 21.61, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. The company has a current ratio of 0.98, a quick ratio of 0.58 and a debt-to-equity ratio of 0.57. The stock’s fifty day simple moving average is $88.27 and its 200-day simple moving average is $85.25.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.57. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period in the prior year, the business earned $1.56 EPS. The firm’s quarterly revenue was down 40.6% on a year-over-year basis. Analysts predict that Microchip Technology Incorporated will post 4.64 EPS for the current year.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the transaction, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 2.07% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. grew its position in Microchip Technology by 0.9% during the 4th quarter. Principal Financial Group Inc. now owns 9,279,166 shares of the semiconductor company’s stock worth $836,795,000 after purchasing an additional 87,203 shares during the last quarter. Northern Trust Corp grew its position in Microchip Technology by 1.1% during the 3rd quarter. Northern Trust Corp now owns 7,521,409 shares of the semiconductor company’s stock worth $587,046,000 after purchasing an additional 80,431 shares during the last quarter. Norges Bank purchased a new stake in shares of Microchip Technology in the fourth quarter valued at about $672,196,000. Van ECK Associates Corp boosted its holdings in shares of Microchip Technology by 17.2% in the first quarter. Van ECK Associates Corp now owns 6,068,311 shares of the semiconductor company’s stock valued at $544,388,000 after acquiring an additional 891,297 shares in the last quarter. Finally, Mizuho Markets Americas LLC purchased a new stake in shares of Microchip Technology in the third quarter valued at about $225,800,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.