Stephens Investment Management Group LLC Increases Stake in Microchip Technology Incorporated

Stephens Investment Management Group LLC has raised its ownership in Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 31.5% during the fourth quarter, as indicated by the firm's latest filing with the SEC. After acquiring an additional 164,254 shares in the quarter, the company now holds 685,455 shares of the semiconductor firm. This stock holding is valued at approximately $39.31 million, which represents about 0.13% of Microchip Technology's total shares.

In addition to Stephens, several other hedge funds have recently adjusted their stakes in Microchip Technology. For instance, Prospera Private Wealth LLC acquired a new stake in the company during the third quarter worth around $29,000. Similarly, Peterson Financial Group Inc. and Truvestments Capital LLC also bought new positions in Microchip Technology with values of approximately $34,000 each. Another investment, made by Financial Life Planners, amounted to about $32,000 in the fourth quarter.

Furthermore, Wolff Wiese Magana LLC increased its position in Microchip Technology by 55.2% during the third quarter, now owning 613 shares valued at $49,000 post their acquisition of an additional 218 shares.

Microchip Technology Stock Performance

On Friday, NASDAQ:MCHP opened at $51.89. Over the past year, Microchip Technology has recorded a low of $50.21 and a high of $100.57. The company's stock is currently showing a 50-day moving average price of $57.71, with a two-hundred day moving average at $69.98. Microchip Technology has a debt-to-equity ratio of 0.71, a quick ratio of 0.48, and a current ratio of 0.88. The market capitalization stands at $27.87 billion, alongside a price-to-earnings ratio of 92.66 and a beta of 1.50.

Company Earnings Report and Dividend Announcement

Microchip Technology announced its quarterly earnings on February 6th, reporting earnings per share (EPS) of $0.13, which fell short of analysts' expectations of $0.28 by $0.15. The company's net margin is 6.49%, and its return on equity is 12.41%. Analysts predict that Microchip Technology will post an annual EPS of 1.3 for the current fiscal year.

Additionally, the company has declared a quarterly dividend to be distributed on March 7th. Shareholders recorded as of February 24th will receive a dividend of $0.455, amounting to an annualized rate of $1.82 and a yield of 3.51%. The ex-dividend date is set for February 24th. Notably, Microchip Technology's payout ratio is at a notably high 325.00%.

Analyst Recommendations and Ratings

Microchip Technology has recently been under review by various analysts. Piper Sandler maintains an "overweight" rating, suggesting a target price decrease from $85.00 to $65.00 for the shares. Stifel Nicolaus has also lowered their target price from $90.00 to $87.00 while retaining a “buy” recommendation. The Goldman Sachs Group has adjusted its price target from $72.00 to $63.00, giving it a neutral rating. KeyCorp similarly has lowered its target from $70.00 to $60.00 with an overweight rating. Morgan Stanley has also reassessed its price target, lowering it from $71.00 to $58.00, categorizing it as an equal weight. Overall, one analyst has assigned a sell rating, five hold ratings, thirteen buy ratings, and one strong buy rating, leading to an average consensus of a "Moderate Buy" rating with a price target averaging $77.11.

About Microchip Technology Incorporated

Microchip Technology Incorporated focuses on developing, manufacturing, and selling innovative embedded control solutions that are smart, connected, and secure across various regions including the Americas, Europe, and Asia. Their product range features various microcontrollers and processors designed for applications in automotive, industrial, communication, security, and data connectivity among others.

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