Microchip Technology (NASDAQ:MCHP) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Microchip Technology (NASDAQ:MCHP) announced its quarterly earnings results on Thursday. The semiconductor company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02, FiscalAI reports. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same period in the prior year, the company earned $0.46 EPS. Microchip Technology’s revenue was down 2.0% compared to the same quarter last year. Microchip Technology updated its Q3 2026 guidance to 0.340-0.400 EPS.

Microchip Technology Trading Down 5.2%

MCHP stock traded down $3.07 during mid-day trading on Friday, reaching $56.28. The company’s stock had a trading volume of 19,091,235 shares, compared to its average volume of 9,702,577. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $77.20. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The business’s 50 day moving average price is $64.24 and its 200 day moving average price is $64.08. The company has a market cap of $30.37 billion, a price-to-earnings ratio of -165.53, a price-to-earnings-growth ratio of 1.79 and a beta of 1.57.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 9th. Investors of record on Monday, November 24th will be paid a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, November 24th. This represents a $1.82 annualized dividend and a yield of 3.2%. Microchip Technology’s dividend payout ratio (DPR) is currently -535.29%.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the sale, the chief financial officer directly owned 30,010 shares of the company’s stock, valued at approximately $2,062,287.20. The trade was a 19.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.25, for a total transaction of $682,500.00. Following the transaction, the director directly owned 30,665 shares in the company, valued at $2,092,886.25. This trade represents a 24.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MCHP. Rafferty Asset Management LLC boosted its holdings in Microchip Technology by 41.0% in the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company’s stock worth $436,559,000 after acquiring an additional 1,803,945 shares in the last quarter. Ameriprise Financial Inc. raised its position in shares of Microchip Technology by 255.7% during the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company’s stock worth $150,271,000 after purchasing an additional 1,534,829 shares during the period. Worldquant Millennium Advisors LLC bought a new position in shares of Microchip Technology in the 2nd quarter worth $101,359,000. Canada Pension Plan Investment Board grew its position in Microchip Technology by 38.0% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,469,612 shares of the semiconductor company’s stock valued at $103,417,000 after purchasing an additional 404,648 shares during the period. Finally, CANADA LIFE ASSURANCE Co increased its stake in Microchip Technology by 39.5% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 880,047 shares of the semiconductor company’s stock valued at $61,973,000 after purchasing an additional 249,131 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Susquehanna cut their price target on Microchip Technology from $85.00 to $75.00 and set a “positive” rating on the stock in a research note on Friday. Raymond James Financial raised their price objective on shares of Microchip Technology from $65.00 to $75.00 and gave the company a “strong-buy” rating in a report on Friday, August 8th. Truist Financial reiterated a “hold” rating and set a $60.00 target price (down from $64.00) on shares of Microchip Technology in a research report on Friday. Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 18th. Finally, Citigroup dropped their price target on shares of Microchip Technology from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $73.47.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.