Richard Simoncic Sells 5,000 Shares of Microchip Technology (NASDAQ:MCHP) Stock

Microchip Technology Incorporated (NASDAQ:MCHP) COO Richard Simoncic sold 5,000 shares of Microchip Technology stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $93.44, for a total value of $467,200.00. Following the transaction, the chief operating officer directly owned 135,508 shares of the company’s stock, valued at $12,661,867.52. This trade represents a 3.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Microchip Technology Trading Down 1.2%

NASDAQ:MCHP opened at $96.85 on Thursday. The company has a market capitalization of $52.50 billion, a PE ratio of 461.21, a price-to-earnings-growth ratio of 1.03 and a beta of 1.75. 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 Incorporated has a 52-week low of $48.52 and a 52-week high of $105.91. The stock has a fifty day simple moving average of $80.81 and a 200-day simple moving average of $72.37.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The business’s revenue was up 35.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, equities research analysts expect that Microchip Technology Incorporated will post 2.58 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, May 22nd. Microchip Technology’s payout ratio is 866.67%.

Key Stories Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Microchip is being highlighted as a beneficiary of the AI and data-center buildout, with commentary pointing to strong customer engagement and improving operating leverage after its recent quarterly report. Microchip Technology Incorporated (MCHP) Capitalizes on Data Center and AI Boom
• Positive Sentiment: The company launched 3.3 kV HV-D3 mSiC power modules aimed at AI hyperscale data centers, a move that could strengthen its position in high-growth power infrastructure for AI. AI Chips Today – Transforming Power: Microchip’s Silicon Carbide Modules Revolutionize Efficiency
• Positive Sentiment: Technical traders are viewing MCHP favorably after the stock moved above its 20-day moving average, which is often seen as a short-term bullish signal. Microchip Technology (MCHP) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Analyst sentiment remains constructive after the May 7 earnings beat, with multiple firms lifting price targets and the stock now viewed as a possible beneficiary of renewed semiconductor demand. Micron Hits a $1 Trillion Valuation: What’s Next?

Analyst Upgrades and Downgrades

MCHP has been the subject of a number of recent research reports. JPMorgan Chase & Co. lifted their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Wall Street Zen upgraded Microchip Technology from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Susquehanna lifted their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research report on Friday, May 8th. Weiss Ratings upgraded Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 22nd. Finally, Truist Financial lifted their price objective on Microchip Technology from $69.00 to $105.00 and gave the stock a “hold” rating in a research report on Friday, May 8th. Four analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $97.52.

Institutional Trading of Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCHP. Winnow Wealth LLC purchased a new stake in Microchip Technology in the 3rd quarter valued at about $25,000. Root Financial Partners LLC purchased a new stake in Microchip Technology in the 3rd quarter valued at about $28,000. EFG International AG purchased a new stake in Microchip Technology in the 4th quarter valued at about $29,000. Miller Capital Partners Inc. purchased a new stake in Microchip Technology in the 4th quarter valued at about $29,000. Finally, Reflection Asset Management purchased a new stake in Microchip Technology in the 4th quarter valued at about $33,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.