Microchip Technology Incorporated (NASDAQ:MCHP) Raises Dividend to $0.45 Per Share

Microchip Technology Incorporated (NASDAQ:MCHPGet Free Report) declared a quarterly dividend on Monday, May 6th, RTT News reports. Investors of record on Wednesday, May 22nd will be paid a dividend of 0.452 per share by the semiconductor company on Wednesday, June 5th. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.92%. The ex-dividend date of this dividend is Tuesday, May 21st. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45.

Microchip Technology has increased its dividend by an average of 29.3% annually over the last three years and has raised its dividend annually for the last 23 consecutive years. Microchip Technology has a dividend payout ratio of 43.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Microchip Technology to earn $3.93 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 46.1%.

Microchip Technology Price Performance

Shares of Microchip Technology stock opened at $94.33 on Friday. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.67 and a current ratio of 1.20. The firm’s 50-day simple moving average is $89.44 and its 200-day simple moving average is $86.43. The firm has a market cap of $50.98 billion, a P/E ratio of 27.18, a price-to-earnings-growth ratio of 3.29 and a beta of 1.60. Microchip Technology has a twelve month low of $68.75 and a twelve month high of $96.14.

Microchip Technology (NASDAQ:MCHPGet Free Report) last issued its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.57. Microchip Technology had a return on equity of 36.78% and a net margin of 24.98%. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same period last year, the business earned $1.56 earnings per share. The business’s revenue was down 40.6% on a year-over-year basis. As a group, research analysts expect that Microchip Technology will post 2.38 EPS for the current fiscal year.

Insider Activity

In other news, CFO James Eric Bjornholt sold 1,970 shares of Microchip Technology stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the transaction, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at $2,759,722.70. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. In related news, VP Stephen V. Drehobl sold 7,830 shares of the business’s stock in a transaction that occurred on Thursday, May 16th. The stock was sold at an average price of $95.06, for a total value of $744,319.80. Following the completion of the transaction, the vice president now directly owns 79,509 shares in the company, valued at approximately $7,558,125.54. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 1,970 shares of the firm’s stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $83.90, for a total transaction of $165,283.00. Following the sale, the chief financial officer now owns 32,893 shares in the company, valued at $2,759,722.70. The disclosure for this sale can be found here. Insiders sold a total of 19,800 shares of company stock valued at $1,818,403 in the last ninety days. 2.07% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price objective on shares of Microchip Technology in a research note on Tuesday, January 30th. Citigroup raised their price target on Microchip Technology from $100.00 to $104.00 and gave the company a “buy” rating in a report on Tuesday, May 7th. KeyCorp boosted their price objective on Microchip Technology from $90.00 to $110.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 7th. Stifel Nicolaus increased their target price on Microchip Technology from $98.00 to $102.00 and gave the stock a “buy” rating in a report on Wednesday, May 1st. Finally, TD Cowen lifted their price target on Microchip Technology from $80.00 to $90.00 and gave the company a “hold” rating in a report on Tuesday, May 7th. Six equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat.com, Microchip Technology currently has an average rating of “Moderate Buy” and an average target price of $99.39.

Read Our Latest Report on MCHP

Microchip Technology Company Profile

(Get Free Report)

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.

See Also

Dividend History for Microchip Technology (NASDAQ:MCHP)

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