On September 1, 2023, it was reported that Aviva PLC had increased its stake in Microchip Technology Incorporated by 18.3% during the first quarter of the year. According to the filing with the Securities and Exchange Commission (SEC), the institutional investor now owned 374,286 shares of Microchip Technology’s stock, after acquiring an additional 58,028 shares in that period. At the time of the filing, Aviva PLC’s holdings were valued at $31,358,000.
Microchip Technology has garnered attention from various research firms recently. Susquehanna lowered their price target for the company from $105.00 to $100.00 and gave it a “positive” rating in a report released on August 4th. Meanwhile, Wolfe Research initiated coverage on Microchip Technology on July 19th and assigned it a “market perform” rating. Morgan Stanley raised their price target for the company from $97.00 to $101.00 and rated it as “overweight” on August 4th. Similarly, Needham & Company LLC reiterated their “buy” rating and set a price target of $100.00 on August 7th. Lastly, Wells Fargo & Company increased their price target from $80.00 to $90.00 and gave Microchip Technology an “equal weight” rating on August 4th.
In total, eight equities research analysts have given a hold rating to Microchip Technology’s stock, nine have assigned a buy rating, and one has issued a strong buy rating based on Bloomberg data as per September 1, 2023.
As of Friday’s trading session on September 1st at approximately $81.80 per share with volumes reaching around 122,075 shares traded hands; this is compared to its average daily volume of about 4,858,919 shares traded.
Microchip Technology has demonstrated stable financials, with a debt-to-equity ratio of 0.68, a current ratio of 1.02, and a quick ratio of 0.60. The company currently holds a market capitalization of $44.53 billion and boasts a price-to-earnings (PE) ratio of 18.94. Additionally, the company has a price/earnings to growth (PEG) ratio of 1.15 and a beta of 1.60.
Over the past year, Microchip Technology’s stock has traded between $54.77 and $94.30 per share, signifying its price volatility within that period. At the time this article was written, the stock had settled around its fifty-day moving average of $86.20 and exceeded its two hundred-day moving average of $81.91.
It is worth noting that all financial data mentioned in this article may be subject to change due to future market conditions and corporate developments in Microchip Technology Incorporated.
References:
– https://www.sec.gov/
– Bloomberg
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Hedge Funds and Institutional Investors Show Confidence in Microchip Technology as it Reports Strong Performance and Increased Dividend
September 1, 2023 – Microchip Technology (NASDAQ:MCHP) has seen significant modifications to its holdings by various hedge funds and institutional investors. Shelton Capital Management increased its ownership in the semiconductor company by 17.6% during the first quarter, now owning 51,009 shares valued at $4,274,000. Similarly, RMB Capital Management LLC boosted its holdings by 45.0% during the same period, owning 22,273 shares worth $1,866,000. BI Asset Management Fondsmaeglerselskab A S increased its holdings by an impressive 84.7% in the fourth quarter to own 21,887 shares valued at $1,538,000. Independence Bank of Kentucky saw a boost of 70.1% in their holdings during the first quarter and now owns 2,388 shares worth $200,000. Lastly, abrdn plc saw a modest increase of 9.6% in their holdings during the fourth quarter and now owns 144,752 shares valued at $10,169,000.
It is also noteworthy that a significant portion of Microchip Technology’s stock is owned by institutional investors and hedge funds with a total of 90.85%. This demonstrates confidence in the company’s future prospects.
In terms of insider transactions within Microchip Technology, CFO James Eric Bjornholt recently sold 2,363 shares on August 23rd at an average price of $78.63 per share for a total value of $18584102.! After the sale concluded , Bjornholt now holds direct ownership over roughly328818 associated with our stocks He total value held stands at approximately25531552!. These details were disclosed through a filing with the Securities & Exchange Commission.
Several research firms have also weighed in on Microchip Technology’s current standing . Susquehanna issued a “positive” rating for the company with a price target of $100.00, having previously decreased their target from $105.00. Additionally, Wolfe Research provided coverage on Microchip Technology and rated it as “market perform”. Meanwhile, Morgan Stanley raised their target price from $97.00 to $101.00 and assigned an “overweight” rating to the company. Needham & Company LLC reaffirmed their “buy” rating on the stock with a $100.00 target price. Lastly, Wells Fargo & Company also raised their target price from $80.00 to $90.00 and gave Microchip Technology an “equal weight” rating.
Overall, there are eight equities research analysts who have given the stock a hold rating, nine have given it a buy rating, and one has issued a strong buy rating indicating positive prospects for Microchip Technology’s performance in the market.
Microchip Technology recently reported its quarterly earnings results on August 3rd, showing an EPS of $1.64 that met consensus estimates of analysts.. The business achieved revenue of $2.29 billion for the quarter, aligning with analyst forecasts.. Additionally , Microhip technology had good financial management returning over 51 percent equity and achieving a net margin of 27.35%. Year over year ,the company’s revenue increased by 16% compared to the same quarter in the previous fiscal year when EPS wasposted at 1$30.
Furthermore — in terms dividends– Microchip Technology announced that it would be paying out a quarterly dividend on September 5th . Its shareholders were entittled toa dividend that inclreased to$0!.41 which represented an increase from the compny’s earlier dividened payment standing at $.38.. As dictated by regulations , only shareholders recorded with ownership by August 22nd were eligible for this dividentn; while steps should also be taken note off seeing asthose purchasing stock on Augest 21st or later would not recieve this divident. This increased annualdividend of $1.64 is equivalent to a yield of 2.00% for shareholders ,if one assumes current position and doesnot take into account the potential growth in value of Microchip Technology shares over time Additionally, the dividend payout ratio (DPR) stands at 37.96%.
In summary, Microchip Technology has witnessed various modifications in holdings by hedge funds and institutional investors, demonstrating confidence in the company’s future prospects. The recent insider transaction by CFO James Eric Bjornholt and the positive ratings from research firms also further contribute to this sentiment. With consistent earnings performance and an increased dividend payout, Microchip Technology remains an attractive option for investors looking for steady returns in the semiconductor industry.