Microchip Technology Incorporated (NASDAQ:MCHP) Announces Dividend Increase – $0.28 Per Share

Microchip Technology Incorporated (NASDAQ:MCHPGet Rating) announced a quarterly dividend on Monday, May 9th, RTT News reports. Investors of record on Friday, May 20th will be paid a dividend of 0.276 per share by the semiconductor company on Friday, June 3rd. This represents a $1.10 dividend on an annualized basis and a yield of 1.60%. The ex-dividend date of this dividend is Thursday, May 19th. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.25.

Microchip Technology has raised its dividend payment by an average of 5.4% annually over the last three years and has raised its dividend every year for the last 20 years. Microchip Technology has a payout ratio of 19.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microchip Technology to earn $5.22 per share next year, which means the company should continue to be able to cover its $1.01 annual dividend with an expected future payout ratio of 19.3%.

NASDAQ:MCHP opened at $69.20 on Wednesday. Microchip Technology has a twelve month low of $63.34 and a twelve month high of $90.00. The company has a market cap of $38.47 billion, a price-to-earnings ratio of 30.55, a price-to-earnings-growth ratio of 0.62 and a beta of 1.56. The stock has a fifty day simple moving average of $70.01 and a 200-day simple moving average of $76.42. The company has a current ratio of 1.75, a quick ratio of 1.14 and a debt-to-equity ratio of 1.30.

Microchip Technology (NASDAQ:MCHPGet Rating) last released its earnings results on Monday, May 9th. The semiconductor company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.09. Microchip Technology had a return on equity of 41.89% and a net margin of 18.85%. The business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.82 billion. During the same period last year, the company earned $0.82 earnings per share. The business’s revenue for the quarter was up 25.6% compared to the same quarter last year. As a group, equities research analysts predict that Microchip Technology will post 4.98 EPS for the current fiscal year.

Several research firms have recently weighed in on MCHP. The Goldman Sachs Group downgraded Microchip Technology from a “buy” rating to a “neutral” rating and set a $79.00 target price for the company. in a research report on Sunday, March 27th. Stifel Nicolaus raised their price target on Microchip Technology from $82.00 to $84.00 and gave the company a “hold” rating in a research note on Friday, February 4th. Truist Financial cut their price target on Microchip Technology from $94.00 to $79.00 and set a “buy” rating on the stock in a research note on Friday, April 8th. Rosenblatt Securities raised their price target on Microchip Technology from $120.00 to $125.00 and gave the company a “buy” rating in a research note on Friday, February 4th. Finally, Mizuho cut their price target on Microchip Technology from $75.00 to $72.00 in a research note on Tuesday, May 10th. Six equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Microchip Technology presently has a consensus rating of “Buy” and a consensus target price of $93.81.

In other news, VP Mitchell R. Little sold 3,613 shares of Microchip Technology stock in a transaction dated Tuesday, February 22nd. The stock was sold at an average price of $70.93, for a total transaction of $256,270.09. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Matthew W. Chapman sold 1,000 shares of Microchip Technology stock in a transaction dated Tuesday, February 22nd. The stock was sold at an average price of $70.93, for a total value of $70,930.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 7,092 shares of company stock worth $500,909. 2.03% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hardman Johnston Global Advisors LLC increased its position in Microchip Technology by 100.0% in the 4th quarter. Hardman Johnston Global Advisors LLC now owns 15,000 shares of the semiconductor company’s stock valued at $1,306,000 after acquiring an additional 7,500 shares during the period. Heritage Wealth Advisors increased its position in Microchip Technology by 99.9% in the 4th quarter. Heritage Wealth Advisors now owns 7,624 shares of the semiconductor company’s stock valued at $664,000 after acquiring an additional 3,811 shares during the period. Flagship Harbor Advisors LLC acquired a new position in Microchip Technology in the 4th quarter valued at about $228,000. Sequoia Financial Advisors LLC acquired a new position in Microchip Technology in the 4th quarter valued at about $289,000. Finally, Barclays PLC increased its position in Microchip Technology by 468.3% in the 4th quarter. Barclays PLC now owns 3,385,898 shares of the semiconductor company’s stock valued at $294,776,000 after acquiring an additional 2,790,097 shares during the period. Institutional investors and hedge funds own 89.36% of the company’s stock.

Microchip Technology Company Profile (Get Rating)

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

See Also

Dividend History for Microchip Technology (NASDAQ:MCHP)

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