Microchip Technology Incorporated (NASDAQ:MCHP) Announces $0.46 Quarterly Dividend

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Thursday, February 5th. Stockholders of record on Monday, February 23rd will be paid a dividend of 0.455 per share by the semiconductor company on Tuesday, March 10th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, February 23rd.

Microchip Technology has increased its dividend by an average of 0.2%per year over the last three years and has increased its dividend annually for the last 23 consecutive years. Microchip Technology has a payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $0.96 per share next year, which means the company may not be able to cover its $1.82 annual dividend with an expected future payout ratio of 189.6%.

Microchip Technology Trading Down 3.9%

NASDAQ MCHP opened at $75.02 on Friday. The firm’s fifty day moving average price is $69.54 and its 200 day moving average price is $65.57. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $81.43. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.25 and a quick ratio of 1.20. The company has a market capitalization of $40.55 billion, a price-to-earnings ratio of -167.67, a price-to-earnings-growth ratio of 2.00 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.01. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm posted $0.20 earnings per share. Microchip Technology’s revenue for the quarter was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, sell-side analysts expect that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This trade represents a 12.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 121,615 shares of company stock valued at $9,641,654. 1.94% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Winnow Wealth LLC purchased a new stake in Microchip Technology during the third quarter worth about $25,000. Root Financial Partners LLC acquired a new stake in shares of Microchip Technology in the 3rd quarter worth approximately $28,000. Salomon & Ludwin LLC increased its stake in Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 329 shares in the last quarter. Quent Capital LLC purchased a new position in Microchip Technology in the 3rd quarter valued at approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in Microchip Technology by 106.8% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock worth $33,000 after purchasing an additional 267 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.