On September 14, 2023, it was reported that ProShare Advisors LLC had increased its position in Microchip Technology Incorporated (NASDAQ:MCHP) by 9.8% in the first quarter, according to the company’s disclosure with the Securities & Exchange Commission. The institutional investor now owns 658,251 shares of the semiconductor company’s stock, after purchasing an additional 58,806 shares during the quarter. This represents approximately 0.12% ownership of Microchip Technology and is valued at $55,148,000.
Microchip Technology recently announced its quarterly earnings data on August 3rd. During this time, the company reported earnings per share of $1.64 for the quarter, which met the consensus estimate of analysts. Additionally, Microchip Technology demonstrated a return on equity of 51.51% and a net margin of 27.35%. In terms of revenue, the company generated $2.29 billion for the quarter compared to analyst estimates of $2.29 billion. This represents a significant increase in revenue, with a growth rate of 16.6% compared to the same quarter last year when EPS stood at $1.30.
Sell-side analysts predict that for the current year, Microchip Technology Incorporated will post earnings per share amounting to $5.8.
Various brokerages have issued reports on MCHP recently as well. Truist Financial raised their price objective from $95.00 to $104.00 and assigned a “buy” rating to Microchip Technology’s stock in their research note published on July 14th. Wells Fargo & Company also increased their price objective from $80.00 to $90.00 and assigned an “equal weight” rating to the stock in early August.
Rosenblatt Securities reiterated a “buy” rating and set a $125.00 price objective on shares of Microchip Technology on August 3rd. Meanwhile, Wolfe Research initiated coverage on the company and designated it a “market perform” rating on July 19th. Citigroup raised their price objective from $76.00 to $92.00 and assigned a “neutral” rating to Microchip Technology on July 18th.
Currently, the stock has an average rating of “Moderate Buy” according to data from Bloomberg, with an average price target of $98.18.
In conclusion, ProShare Advisors LLC’s increased position in Microchip Technology reflects its confidence in the company’s growth prospects. With strong quarterly earnings and positive analyst ratings, Microchip Technology demonstrates its ability to deliver consistent performance in the semiconductor industry.
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Institutional Investors and Hedge Funds Boost Holdings in Microchip Technology
Institutional investors and hedge funds continue to show interest in Microchip Technology, as they have reportedly modified their holdings of the company. Shelton Capital Management, for instance, has boosted its position in shares of Microchip Technology by 17.6% in the first quarter of this year. The firm now owns 51,009 shares of the semiconductor company’s stock, valued at $4,274,000. Aviva PLC has also increased its position in Microchip Technology by 21.0% in the fourth quarter of the previous year. The company now owns 316,258 shares worth $29,718,000.
RMB Capital Management LLC has shown a significant boost as well by increasing its position in shares of Microchip Technology by 45.0% during the first quarter this year. RMB Capital Management LLC currently holds 22,273 shares valued at $1,866,000. BI Asset Management Fondsmaeglerselskab A S follows suit with an increase of 84.7% during the fourth quarter last year. The firm now possesses 21,887 shares valued at $1,538,000. Independence Bank of Kentucky boosts its position by an impressive 70.1% during the first quarter and currently owns 2,388 shares worth $200,000.
The substantial investments made by institutional investors and hedge funds indicate positive sentiments towards Microchip Technology and imply confidence in the company’s potential for growth and financial success.
Shares for NASDAQ:MCHP opened at $78.67 on Thursday. It is noteworthy that Microchip Technology Incorporated has experienced a price range from a low of $54.77 to a high of $94.30 within one year; reflecting not only market volatility but also investment opportunities for those willing to take calculated risks.
Microchip Technology has a market capitalization of $42.82 billion along with a PE ratio of 18.21, a PEG ratio of 1.13, and a beta of 1.63. The firm’s 50-day moving average stands at $84.95, while its 200-day moving average is slightly lower at $81.74. These figures reflect the company’s volatility in line with market trends.
Regarding recent reports on MCHP, eight investment analysts have rated the stock as “hold,” nine have assigned a buy rating, and one has given it a strong buy rating. This data is derived from Bloomberg and suggests an average rating of “Moderate Buy,” with an average price target of $98.18.
On Tuesday, September 5th, Microchip Technology declared a quarterly dividend for its investors. This was an increase from its previous dividend and signifies the company’s commitment to rewarding shareholders. The ex-dividend date was Monday, August 21st, while the record date was Tuesday, August 22nd.
In terms of insider trading activities within the company, CFO James Eric Bjornholt recently sold 2,363 shares of Microchip Technology’s stock at an average price of $78.63 per share, yielding a total value of $185,802.69. After the sale, Bjornholt holds approximately 32,004 shares worth about $2,516,474.52.
Microchip Technology appears to be attracting attention from both institutional investors and hedge funds due to its potential for growth and financial stability within the semiconductor industry. While market volatility remains a factor to consider in investing decisions surrounding MCHP stock options, analysts’ optimistic ratings provide further encouragement for potential investors considering their options in this field.
