TCW Group Inc. Grows Stock Holdings in Microchip Technology Incorporated $MCHP

TCW Group Inc. increased its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP) by 69.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 114,882 shares of the semiconductor company’s stock after purchasing an additional 47,091 shares during the period. TCW Group Inc.’s holdings in Microchip Technology were worth $10,477,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of MCHP. Wolverine Asset Management LLC raised its holdings in Microchip Technology by 3,833.7% during the fourth quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock worth $2,416,000 after purchasing an additional 36,957 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group purchased a new stake in shares of Microchip Technology during the 4th quarter worth approximately $6,691,000. Epoch Investment Partners Inc. boosted its holdings in shares of Microchip Technology by 16.5% in the 4th quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock valued at $85,967,000 after buying an additional 191,339 shares in the last quarter. Peregrine Investment Management Inc. acquired a new position in shares of Microchip Technology in the 1st quarter valued at $5,492,000. Finally, Norges Bank purchased a new position in shares of Microchip Technology in the 4th quarter valued at $664,564,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on MCHP shares. Needham & Company LLC lifted their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday. Rosenblatt Securities reaffirmed a “buy” rating and set a $120.00 price objective on shares of Microchip Technology in a report on Friday, August 7th. JPMorgan Chase & Co. lifted their target price on Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Finally, UBS Group reissued a “buy” rating and issued a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.85.

Microchip Technology Trading Up 1.9%

NASDAQ MCHP opened at $79.17 on Friday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. The firm has a market cap of $42.99 billion, a PE ratio of 118.17, a P/E/G ratio of 0.61 and a beta of 1.76. Microchip Technology Incorporated has a one year low of $48.52 and a one year high of $105.91. The firm’s fifty day moving average is $85.72 and its two-hundred day moving average is $81.47.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same period in the prior year, the company earned $0.27 earnings per share. The business’s 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. Analysts expect that Microchip Technology Incorporated will post 2.81 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s dividend payout ratio (DPR) is presently 271.64%.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 3,667 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the sale, the chief financial officer owned 28,573 shares in the company, valued at $2,596,428.51. This represents a 11.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer owned 130,508 shares of the company’s stock, valued at $12,727,140.16. This trade represents a 3.69% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 16,667 shares of company stock valued at $1,580,580. 1.79% of the stock is owned by company insiders.

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.