LPL Financial LLC Increases Stock Position in Microchip Technology Incorporated (NASDAQ:MCHP)

LPL Financial LLC has increased its stake in Microchip Technology Incorporated (NASDAQ:MCHP) by 25.4% in the fourth quarter, according to its recent filings with the Securities and Exchange Commission (SEC). After acquiring an additional 109,885 shares during this period, LPL Financial LLC now owns a total of 542,005 shares of the semiconductor company, valued at approximately $31,084,000.

Additionally, other institutional investors have also adjusted their holdings in Microchip Technology. For instance, Van ECK Associates Corp raised its position by 39.3% in the fourth quarter, bringing its total ownership to 11,093,007 shares worth $636,184,000 after buying an additional 3,131,807 shares. Similarly, Franklin Resources Inc. increased its shares by 30.2%, now holding 3,347,643 shares valued at $264,430,000 after purchasing an extra 776,408 shares. Furthermore, Charles Schwab Investment Management Inc. added 116,823 shares, boosting its stake to 3,143,769 shares valued at $180,295,000. Assenagon Asset Management S.A. dramatically increased its position by 9,901.6%, acquiring 2,857,654 shares valued at $163,886,000, while Sumitomo Mitsui Trust Group Inc. raised its holdings by 1.2%, owning 2,144,811 shares now worth $123,005,000. In total, hedge funds and other institutional investors control 91.51% of the company's stock.

Insider Transactions at Microchip Technology

In related news, the Chief Financial Officer James Eric Bjornholt sold 3,724 shares on February 25th at an average price of $60.88, totaling $226,717.12. After the sale, Bjornholt continues to hold 33,272 shares valued at approximately $2,025,599.36, reflecting a 10.07% decrease in ownership. This transaction has been reported in a legal filing with the SEC. Corporate insiders own around 2.10% of the company’s stock.

Microchip Technology Stock Performance

The stock opened at $48.70 on Friday, experiencing a decrease of 4.1% recently. With a debt-to-equity ratio of 1.12, a quick ratio of 1.23, and a current ratio of 2.25, Microchip Technology has a 52-week low of $48.27 and a high of $100.57. The company's market capitalization stands at $26.19 billion, with a price-to-earnings ratio of 86.96 and a beta of 1.52.

Microchip Technology last reported its quarterly earnings on February 6th, showing $0.13 earnings per share (EPS), which fell short of analysts’ expectations of $0.28 by $0.15. The company had a return on equity of 12.62% and a net margin of 6.49%. Analysts predict that Microchip Technology will report an EPS of 1.03 for the current year.

Microchip Technology Dividend Announcement

The company recently announced a quarterly dividend, which was paid on March 7th. Shareholders who were on record as of February 24th received a dividend of $0.455. This equates to an annualized dividend of $1.82, which offers a yield of 3.74%. The ex-dividend date was February 24th, and Microchip Technology's current dividend payout ratio stands at 325.00%.

Analysts' Price Targets

Various research analysts have provided updates regarding the stock. Rosenblatt Securities reiterated a “buy” rating with a $70.00 price target on March 4th. Morgan Stanley lowered its target from $71.00 to $58.00, placing an “equal weight” rating on the stock. Mizuho raised its price target from $58.00 to $68.00 while giving an “outperform” rating. Needham & Company also upped its price objective from $60.00 to $66.00, maintaining a “buy” rating. In contrast, Piper Sandler set its target at $65.00, down from $85.00, while maintaining an “overweight” rating. The consensus from analysts includes two with a sell rating, four holding ratings, thirteen buy ratings, and one strong buy rating. MarketBeat.com indicates that Microchip Technology currently holds an average rating of “Moderate Buy” along with an average price target of $74.37.

About Microchip Technology

Microchip Technology Incorporated is engaged in developing, manufacturing, and selling smart embedded control solutions in North America, Europe, and Asia. The firm provides a wide range of products, including 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, 32-bit embedded mixed-signal microprocessors, and specialized microcontrollers designed for various applications across different sectors such as automotive, industrial, communications, and power management.

Stocks, Investment, Microchip