Microchip Technology (NASDAQ:MCHP) Sets New 1-Year High After Dividend Announcement

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) reached a new 52-week high during trading 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. Shareholders of record on Wednesday, May 22nd will be given a dividend of $0.452 per share. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45. This represents a $1.81 dividend on an annualized basis and a yield of 1.97%. The ex-dividend date is Tuesday, May 21st. Microchip Technology’s dividend payout ratio (DPR) is presently 42.06%.

Analyst Ratings Changes

MCHP has been the subject of a number of research reports. Wolfe Research raised shares of Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 price objective for the company in a research note on Thursday, January 18th. UBS Group upped their price target on shares of Microchip Technology from $95.00 to $103.00 and gave the company a “buy” rating in a research report on Tuesday. TD Cowen lifted their price objective on Microchip Technology from $80.00 to $90.00 and gave the stock a “hold” rating in a report on Tuesday. Stifel Nicolaus raised their price target on Microchip Technology from $98.00 to $102.00 and gave the stock a “buy” rating in a research report on Wednesday, May 1st. Finally, Piper Sandler reiterated a “neutral” rating and issued a $90.00 price objective (up previously from $80.00) on shares of Microchip Technology in a research report on Tuesday. Six equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and an average price target of $98.47.

Microchip Technology Trading Down 0.1 %

The stock’s 50 day moving average is $88.45 and its 200-day moving average is $85.37. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58. The company has a market capitalization of $49.71 billion, a P/E ratio of 21.49, a P/E/G ratio of 2.79 and a beta of 1.60.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, meeting analysts’ consensus estimates of $0.57. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The firm’s revenue for the quarter was down 40.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.56 EPS. As a group, equities research analysts anticipate that Microchip Technology Incorporated will post 4.64 earnings per share for the current year.

Insider Activity

In related news, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the transaction, the chief financial officer now directly owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 2.07% of the company’s stock.

Institutional Trading of Microchip Technology

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BKM Wealth Management LLC purchased a new position in shares of Microchip Technology in the fourth quarter worth $27,000. Rakuten Securities Inc. bought a new position in Microchip Technology during the 4th quarter valued at about $27,000. Rise Advisors LLC purchased a new stake in shares of Microchip Technology during the 1st quarter valued at about $28,000. Fortitude Family Office LLC bought a new stake in shares of Microchip Technology in the fourth quarter worth approximately $29,000. Finally, OFI Invest Asset Management bought a new position in shares of Microchip Technology during the 3rd quarter valued at $26,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

About Microchip Technology

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.