Microchip Technology (NASDAQ:MCHP) Sets New 12-Month High Following Dividend Announcement

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week high during mid-day trading on Tuesday following a dividend announcement from the company. The stock traded as high as $96.14 and last traded at $92.72, with a volume of 832035 shares changing hands. 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 given a $0.452 dividend. The ex-dividend date is Tuesday, May 21st. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.97%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s payout ratio is presently 42.06%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Mizuho raised their target price on shares of Microchip Technology from $82.00 to $85.00 and gave the company a “neutral” rating in a research note on Tuesday. Truist Financial increased their price target on Microchip Technology from $93.00 to $96.00 and gave the company a “buy” rating in a research note on Tuesday. Piper Sandler restated a “neutral” rating and set a $90.00 price target (up previously from $80.00) on shares of Microchip Technology in a research note on Tuesday. UBS Group increased their price objective on shares of Microchip Technology from $95.00 to $103.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Evercore ISI initiated coverage on shares of Microchip Technology in a research report on Tuesday, April 16th. They set an “outperform” rating and a $106.00 target price on the stock. Six analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $98.47.

Microchip Technology Stock Performance

The firm’s fifty day simple moving average is $88.45 and its 200 day simple moving average is $85.37. The company has a market capitalization of $49.71 billion, a PE ratio of 21.49, a price-to-earnings-growth ratio of 2.79 and a beta of 1.60. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, hitting analysts’ consensus estimates of $0.57. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.33 billion. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The company’s revenue was down 40.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.56 earnings per share. On average, research analysts predict that Microchip Technology Incorporated will post 4.64 EPS for the current year.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction that occurred on Friday, February 23rd. The stock was 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 $2,759,722.70. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 2.07% of the company’s stock.

Institutional Trading of Microchip Technology

A number of large investors have recently made changes to their positions in the company. OFI Invest Asset Management acquired a new stake in Microchip Technology during the third quarter worth approximately $26,000. BKM Wealth Management LLC purchased a new position in shares of Microchip Technology in the 4th quarter valued at approximately $27,000. Rakuten Securities Inc. acquired a new position in shares of Microchip Technology during the fourth quarter worth about $27,000. Rise Advisors LLC purchased a new position in shares of Microchip Technology during the 1st quarter worth approximately $28,000. Finally, Fortitude Family Office LLC purchased a new position in Microchip Technology in the fourth quarter worth $29,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

About Microchip Technology

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.