Microchip Technology (NASDAQ:MCHP) Hits New 52-Week High Following Dividend Announcement

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price hit a new 52-week high during trading on Tuesday after the company announced a dividend. The company traded as high as $96.14 and last traded at $92.72, with a volume of 832035 shares traded. The stock had previously closed at $93.76.

The newly announced dividend which will be paid on Wednesday, June 5th. Stockholders of record on Wednesday, May 22nd will be paid a $0.452 dividend. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Tuesday, May 21st. This represents a $1.81 annualized dividend and a dividend yield of 1.96%. Microchip Technology’s dividend payout ratio (DPR) is presently 42.06%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on MCHP shares. B. Riley increased their price target on shares of Microchip Technology from $105.00 to $110.00 and gave the company a “buy” rating in a report on Tuesday. The Goldman Sachs Group lifted their target price on Microchip Technology from $77.00 to $88.00 and gave the stock a “neutral” rating in a research report on Tuesday. Wolfe Research upgraded Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 price objective for the company in a research report on Thursday, January 18th. Citigroup lifted their price objective on Microchip Technology from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Tuesday. Finally, Truist Financial raised their target price on Microchip Technology from $93.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday. Six equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $98.47.

Microchip Technology Trading Down 1.8 %

The company’s fifty day moving average price is $88.45 and its two-hundred day moving average price is $85.37. The company has a quick ratio of 0.58, a current ratio of 0.98 and a debt-to-equity ratio of 0.57. The company has a market cap of $49.75 billion, a price-to-earnings ratio of 21.51, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same period last year, the firm posted $1.56 EPS. The business’s revenue was down 40.6% on a year-over-year basis. Research analysts expect that Microchip Technology Incorporated will post 4.64 earnings per share for the current year.

Insider Activity

In related news, CFO James Eric Bjornholt sold 1,970 shares of the company’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the transaction, the chief financial officer now owns 32,893 shares in the company, valued at approximately $2,759,722.70. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 2.07% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Norges Bank acquired a new position in shares of Microchip Technology in the 4th quarter valued at $672,196,000. Mizuho Markets Americas LLC acquired a new position in Microchip Technology in the third quarter valued at about $225,800,000. Truist Financial Corp boosted its holdings in Microchip Technology by 324.0% during the fourth quarter. Truist Financial Corp now owns 1,815,013 shares of the semiconductor company’s stock worth $163,678,000 after buying an additional 1,386,924 shares during the last quarter. Van ECK Associates Corp grew its position in shares of Microchip Technology by 17.2% during the 1st quarter. Van ECK Associates Corp now owns 6,068,311 shares of the semiconductor company’s stock worth $544,388,000 after buying an additional 891,297 shares during the period. Finally, Corient Private Wealth LLC increased its stake in shares of Microchip Technology by 76.6% in the 4th quarter. Corient Private Wealth LLC now owns 2,043,484 shares of the semiconductor company’s stock valued at $184,251,000 after acquiring an additional 886,068 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.