Microchip Technology Incorporated (NASDAQ:MCHP) Announces Quarterly Dividend of $0.45

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Monday, May 6th, RTT News reports. Shareholders 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 yield of 1.93%. 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% 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 40.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $2.72 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 66.2%.

Microchip Technology Trading Up 2.6 %

Shares of NASDAQ:MCHP traded up $2.40 during mid-day trading on Monday, reaching $93.76. 7,033,471 shares of the company’s stock were exchanged, compared to its average volume of 5,622,562. The firm has a market capitalization of $50.67 billion, a price-to-earnings ratio of 21.35, a PEG ratio of 2.79 and a beta of 1.60. The business’s fifty day moving average price is $88.05 and its 200-day moving average price is $85.13. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98. Microchip Technology has a twelve month low of $68.75 and a twelve month high of $94.63.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, hitting analysts’ consensus estimates of $0.57. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. Microchip Technology’s revenue was down 40.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.56 earnings per share. On average, research analysts predict that Microchip Technology will post 4.64 EPS for the current fiscal year.

Insider Transactions at Microchip Technology

In related news, CFO James Eric Bjornholt sold 1,970 shares of the company’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at $2,759,722.70. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other news, CFO James Eric Bjornholt sold 1,970 shares of the firm’s stock in a transaction that occurred 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 sale, the chief financial officer now owns 32,893 shares of the company’s stock, valued at approximately $2,759,722.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Karlton D. Johnson sold 370 shares of Microchip Technology stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total value of $31,080.00. Following the completion of the transaction, the director now owns 1,789 shares of the company’s stock, valued at approximately $150,276. The disclosure for this sale can be found here. Company insiders own 2.07% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. TD Cowen boosted their target price on shares of Microchip Technology from $75.00 to $80.00 and gave the company a “market perform” rating in a report on Friday, February 2nd. UBS Group decreased their price target on shares of Microchip Technology from $105.00 to $95.00 and set a “buy” rating for the company in a research note on Friday, February 2nd. Truist Financial decreased their price target on shares of Microchip Technology from $97.00 to $93.00 and set a “buy” rating for the company in a research note on Tuesday, January 9th. Wolfe Research raised shares of Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 price target for the company in a research note on Thursday, January 18th. Finally, The Goldman Sachs Group decreased their target price on shares of Microchip Technology from $87.00 to $77.00 and set a “neutral” rating for the company in a research report on Friday, February 2nd. Six analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology has an average rating of “Moderate Buy” and an average target price of $92.75.

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.