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

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Thursday, August 6th. Stockholders of record on Monday, August 24th will be paid a dividend of 0.455 per share by the semiconductor company on Wednesday, September 9th. This represents a c) dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Monday, August 24th.

Microchip Technology has increased its dividend by an average of 0.2%annually over the last three years and has raised its dividend every year for the last 23 years. Microchip Technology has a payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Microchip Technology to earn $3.61 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 50.4%.

Microchip Technology Trading Down 4.4%

Shares of MCHP stock opened at $74.36 on Friday. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The firm’s 50 day moving average price is $87.34 and its two-hundred day moving average price is $81.28. The stock has a market cap of $40.38 billion, a price-to-earnings ratio of 354.11, a price-to-earnings-growth ratio of 0.78 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business earned $0.27 earnings per share. The business’s quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, analysts anticipate that Microchip Technology will post 2.7 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on MCHP shares. JPMorgan Chase & Co. increased 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. Truist Financial upped their price objective on shares of Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a report on Friday, May 8th. TD Cowen dropped their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a report on Monday, July 13th. Wells Fargo & Company decreased their price target on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research note on Monday, July 20th. Finally, Barclays upped their price objective on Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a report on Monday, May 11th. Four analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, Microchip Technology currently has an average rating of “Moderate Buy” and an average target price of $99.76.

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.