Microchip Technology Incorporated (NASDAQ:MCHP) Increases Dividend to $0.46 Per Share

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Tuesday, November 5th, RTT News reports. Shareholders of record on Friday, November 22nd will be given a dividend of 0.455 per share by the semiconductor company on Friday, December 6th. This represents a $1.82 annualized dividend and a dividend yield of 2.42%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45.

Microchip Technology has raised its dividend by an average of 29.3% annually over the last three years and has increased its dividend every year for the last 23 years. Microchip Technology has a dividend payout ratio of 54.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Microchip Technology to earn $3.02 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 60.3%.

Microchip Technology Stock Up 0.8 %

Shares of NASDAQ:MCHP traded up $0.62 during trading on Tuesday, hitting $75.09. 8,017,443 shares of the company were exchanged, compared to its average volume of 5,933,434. The stock has a market cap of $40.29 billion, a price-to-earnings ratio of 29.76 and a beta of 1.53. Microchip Technology has a fifty-two week low of $71.76 and a fifty-two week high of $100.57. The firm has a fifty day moving average price of $77.28 and a two-hundred day moving average price of $85.25. The company has a current ratio of 1.94, a quick ratio of 1.08 and a debt-to-equity ratio of 0.96.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on MCHP shares. Susquehanna cut their target price on Microchip Technology from $105.00 to $95.00 and set a “positive” rating for the company in a research note on Monday, October 21st. Morgan Stanley downgraded Microchip Technology from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $102.00 to $100.00 in a report on Thursday, July 11th. Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price target on shares of Microchip Technology in a research report on Wednesday, July 31st. Citigroup cut their price target on shares of Microchip Technology from $104.00 to $92.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. Finally, Truist Financial cut shares of Microchip Technology from a “buy” rating to a “hold” rating and cut their price objective for the stock from $89.00 to $80.00 in a research report on Monday, September 23rd. Six analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average price target of $97.89.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 2,154 shares of the company’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the transaction, the chief financial officer now owns 33,257 shares in the company, valued at $2,710,445.50. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of 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 mixed-signal 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.