Microchip Technology Incorporated (MCHP) to Issue Quarterly Dividend of $0.46 on September 9th

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Thursday, August 6th. Shareholders of record on Monday, August 24th will be given a dividend of 0.455 per share by the semiconductor company on Wednesday, September 9th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Monday, August 24th.

Microchip Technology has increased its dividend by an average of 0.2%per year over the last three years and has raised its dividend every year for the last 23 years. Microchip Technology has a payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $3.61 per share next year, which means the company should continue to be able to cover its $1.82 annual dividend with an expected future payout ratio of 50.4%.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $84.69 on Friday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The stock has a market capitalization of $45.99 billion, a PE ratio of 403.30, a P/E/G ratio of 0.75 and a beta of 1.76. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The company has a fifty day moving average of $87.14 and a two-hundred day moving average of $81.30.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company’s revenue for the quarter was up 38.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, research analysts forecast that Microchip Technology will post 2.7 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on MCHP shares. Cantor Fitzgerald reiterated an “overweight” rating and issued a $125.00 price objective on shares of Microchip Technology in a report on Monday, August 3rd. Wells Fargo & Company decreased their target price on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating on the stock in a research report on Monday, July 20th. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Citigroup reduced their price objective on Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a research note on Friday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $120.00 price target on shares of Microchip Technology in a research note on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $98.85.

Microchip Technology Company Profile

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.