Microchip Technology Incorporated (NASDAQ:MCHP) Declares Dividend Increase – $0.45 Per Share

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Thursday, August 1st, Zacks reports. Stockholders of record on Thursday, August 22nd will be paid a dividend of 0.454 per share by the semiconductor company on Thursday, September 5th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.41%. The ex-dividend date of this dividend is Thursday, August 22nd. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45.

Microchip Technology has raised its dividend by an average of 29.3% 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 42.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Microchip Technology to earn $3.92 per share next year, which means the company should continue to be able to cover its $1.81 annual dividend with an expected future payout ratio of 46.2%.

Microchip Technology Trading Down 10.6 %

MCHP traded down $8.94 during trading on Friday, hitting $75.43. 17,482,866 shares of the stock traded hands, compared to its average volume of 6,510,382. The firm has a market capitalization of $40.47 billion, a P/E ratio of 21.74 and a beta of 1.54. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.20 and a quick ratio of 0.67. The firm has a 50-day moving average of $91.66 and a 200 day moving average of $89.39. Microchip Technology has a 12-month low of $68.75 and a 12-month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.52 by $0.01. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.24 billion. During the same period last year, the company posted $1.56 EPS. The company’s quarterly revenue was down 45.8% compared to the same quarter last year. Equities research analysts anticipate that Microchip Technology will post 2.35 EPS for the current year.

Wall Street Analysts Forecast Growth

MCHP has been the subject of a number of analyst reports. Needham & Company LLC raised their price objective on shares of Microchip Technology from $90.00 to $100.00 and gave the company a “buy” rating in a research note on Tuesday, May 7th. Truist Financial dropped their price target on shares of Microchip Technology from $96.00 to $89.00 and set a “buy” rating on the stock in a report on Friday. JPMorgan Chase & Co. dropped their price target on shares of Microchip Technology from $110.00 to $100.00 and set an “overweight” rating on the stock in a report on Friday. Citigroup dropped their price target on shares of Microchip Technology from $104.00 to $92.00 and set a “buy” rating on the stock in a report on Friday. Finally, B. Riley dropped their price objective on shares of Microchip Technology from $110.00 to $103.00 and set a “buy” rating on the stock in a report on Friday. Seven research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $99.15.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, VP Stephen V. Drehobl sold 7,830 shares of the business’s stock in a transaction on Thursday, May 16th. The shares were sold at an average price of $95.06, for a total transaction of $744,319.80. Following the transaction, the vice president now owns 79,509 shares in the company, valued at $7,558,125.54. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In related news, VP Stephen V. Drehobl sold 7,830 shares of the company’s stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $95.06, for a total value of $744,319.80. Following the completion of the sale, the vice president now directly owns 79,509 shares of the company’s stock, valued at $7,558,125.54. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Stephen V. Drehobl sold 10,000 shares of the company’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the completion of the sale, the vice president now directly owns 82,203 shares of the company’s stock, valued at $7,470,608.64. The disclosure for this sale can be found here. Insiders have sold 23,993 shares of company stock worth $2,251,857 over the last quarter. Insiders own 2.07% of the company’s stock.

Microchip Technology Company Profile

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