Nordea Investment Management Increases Stake in Microchip Technology Incorporated

Nordea Investment Management AB has increased its investment in Microchip Technology Incorporated (NASDAQ:MCHP) by 4.9% during the fourth quarter, as reported in its latest 13F filing with the Securities and Exchange Commission. This means that the firm now owns a total of 42,255 shares of the semiconductor company after acquiring an additional 1,983 shares in the quarter. According to the recent filing, Nordea's holdings in Microchip Technology are valued at approximately $2,435,000.

In addition to Nordea, several other hedge funds and institutional investors have adjusted their positions in Microchip Technology. For instance, Everence Capital Management Inc. significantly increased its holdings by 111.7% in the fourth quarter and now owns 9,800 shares, valued at $562,000, after purchasing 5,170 additional shares. Similarly, Franklin Resources Inc. raised its stake by 30.2% in the previous third quarter, achieving ownership of 3,347,643 shares valued at around $264,430,000 after acquiring an extra 776,408 shares.

Other investors such as Synovus Financial Corp, Tidal Investments LLC, and Wilmington Savings Fund Society FSB made modest increases in their stakes as well. Institutional investors collectively hold 91.51% of Microchip Technology's stock, indicating a robust interest from major financial entities.

Recent Analyst Evaluations

Microchip Technology has recently attracted attention from analysts, with various ratings and price targets being published. For example, Rosenblatt Securities reiterated a "buy" rating with a target price of $90 on the stock. Meanwhile, Stifel Nicolaus lowered its target price from $90 to $87 while also maintaining a "buy" rating. The Goldman Sachs Group set a more conservative price objective of $63, rating it as "neutral." KeyCorp adjusted its target price down to $90 as well but rated the stock "overweight." Overall, one analyst issued a sell rating, five analysts assigned a hold rating, and fourteen analysts provided a buy rating, resulting in a consensus rating of "Moderate Buy" with a target price of $87.11 based on MarketBeat data.

Stock Performance and Financial Results

As of last Friday, shares of Microchip Technology were trading at $55.19, reflecting a decrease of 2.1% in value. In terms of financial ratios, the company has a current ratio of 0.88, a quick ratio of 0.48, and a debt-to-equity ratio of 0.71. The stock’s market capitalization stands at $29.64 billion, with a price-to-earnings (P/E) ratio of 38.59. It is worth noting that the stock has experienced a one-year range from a low of $54.47 to a high of $100.57.

Microchip Technology recently reported its quarterly earnings on November 5th, where it announced earnings per share (EPS) of $0.46, surpassing the expected consensus of $0.43 by $0.03. The company generated $1.16 billion in revenue during this quarter, exceeding analysts' expectations of $1.15 billion. Despite this performance, the revenue has notably declined by 48.4% compared to the same quarter last year, which saw an EPS of $1.54. Predictions suggest that Microchip Technology will post an EPS of 1.33 for the current fiscal year.

Dividend Increase Announcement

Moreover, Microchip Technology recently declared a quarterly dividend that was paid on December 6th. Shareholders on record as of November 22nd received a dividend of $0.455, which amounts to an annualized dividend total of $1.82, reflecting a yield of 3.30%. The ex-dividend date was also set for November 22nd. This recent dividend payment marks an increase from the previous quarterly dividend of $0.45, while the company’s dividend payout ratio stands at 127.27%.

Company Overview

Microchip Technology Incorporated is engaged in the development, manufacture, and sale of smart, connected, and secure embedded control solutions across the Americas, Europe, and Asia. The company provides a range of products including 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, embedded mixed-signal microprocessors, and specialized microcontrollers for various applications such as automotive, industrial, computing, and communications.

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