Hilltop Holdings Inc. Increases Stake in Microchip Technology

Hilltop Holdings Inc. significantly increased its investment in Microchip Technology Incorporated (NASDAQ:MCHP) during the third quarter, as reported in their latest filing with the Securities and Exchange Commission (SEC). The firm raised its stake by an impressive 1,872.2%, resulting in ownership of 64,273 shares of the semiconductor company. This expansion was achieved by acquiring an additional 61,014 shares, bringing the total value of Hilltop Holdings' holdings in Microchip Technology to approximately $5.16 million at the end of the quarter.

A number of other hedge funds have also adjusted their positions in Microchip Technology. Empowered Funds LLC enhanced its holdings by 25.7%, owning 96,163 shares valued at $7.72 million following a purchase of 19,663 shares. Similarly, Harvest Fund Management Co. Ltd. saw an increase of 52.1%, now holding 24,713 shares worth $1.98 million after buying 8,467 more shares. Cerity Partners LLC raised its stake by 14.2%, which led to ownership of 260,063 shares valued at $20.88 million after acquiring an additional 32,340 shares. Pinnacle Associates Ltd. boosted its holdings by 50%, owning 105,694 shares worth $8.49 million after adding 35,213 shares. Additionally, Aigen Investment Management LP entered a new position in Microchip Technology, investing approximately $2.39 million.

A notable 91.51% of Microchip Technology's stock is currently owned by institutional investors and hedge funds.

Microchip Technology Stock Overview

The stock for Microchip Technology opened at $70.31 on Tuesday, with a market capitalization of $37.76 billion. It has a price-to-earnings (P/E) ratio of 49.17 and a beta value of 1.50. The company’s fifty-day moving average stands at $73.57, while its 200-day moving average is $82.08. Over the past year, the stock has experienced a low of $62.63 and a high of $100.57. Other financial ratios include a debt-to-equity ratio of 0.71, a current ratio of 0.88, and a quick ratio of 0.48.

• Investors are Taking Stock: Macro Headwinds Impacting Microchip Technology Shares

Microchip Technology recently released its quarterly earnings results, reporting earnings of $0.46 per share, exceeding analysts' predictions of $0.43 by $0.03. The company achieved a return on equity of 19.47% and a net profit margin of 14.22%. The reported revenue for the quarter was $1.16 billion, slightly above analyst expectations of $1.15 billion, though this figure represents a year-over-year decline of 48.4% when compared to the same quarter last year. Analysts forecast an EPS of 1.38 for the current year.

Dividend Announcement by Microchip Technology

The company has also announced a quarterly dividend, set to be paid on Friday, December 6th. Shareholders on record by November 22nd will receive $0.455 per share, an increase from the previous $0.45. The ex-dividend date is November 22nd, making this dividend yield approximately 2.59% based on an annualized dividend of $1.82. However, the dividend payout ratio (DPR) is currently 127.27%.

Analysts Provide Updated Price Targets

Microchip Technology has been the subject of several research reports from analysts. StockNews.com downgraded the stock from a "hold" to a "sell" rating on November 7th. Meanwhile, KeyCorp revised their target price from $100.00 to $95.00 while maintaining an "overweight" rating. Piper Sandler lowered their price target to $85.00 from $100.00, also keeping an "overweight" rating. Additionally, Susquehanna reduced their price target from $95.00 to $90.00, stating a "positive" outlook for the stock. Citigroup adjusted their target down from $92.00 to $82.00, affirming a "buy" rating. In total, one analyst has rated Microchip Technology as a sell, five as hold, and fourteen as buy, resulting in a consensus rating of "Moderate Buy" with an average price target of $92.00.

About Microchip Technology Incorporated

Microchip Technology Incorporated is involved in developing, manufacturing, and selling secure embedded control solutions across the Americas, Europe, and Asia. Their product offerings include general-purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, as well as embedded mixed-signal microprocessors and specialized controllers for various applications including automotive, industrial, and communications.

Investment, Shares, Earnings