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

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Thursday, August 1st, Zacks reports. Stockholders of record on Thursday, August 22nd will be given 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 is Thursday, August 22nd. This is an increase 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 payout ratio of 42.3% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Stock Down 10.6 %

Shares of NASDAQ:MCHP traded down $8.94 during trading on Friday, reaching $75.43. The stock had a trading volume of 17,482,866 shares, compared to its average volume of 6,510,382. Microchip Technology has a one year low of $68.75 and a one year high of $100.57. The company 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 current ratio of 1.20, a quick ratio of 0.67 and a debt-to-equity ratio of 0.75. The firm’s 50-day simple moving average is $91.66 and its 200 day simple moving average is $89.39.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, August 1st. The semiconductor company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.01. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same period last year, the business earned $1.56 EPS. The company’s revenue was down 45.8% compared to the same quarter last year. As a group, research analysts expect that Microchip Technology will post 2.35 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, VP Stephen V. Drehobl sold 10,000 shares of Microchip Technology stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total transaction of $908,800.00. Following the transaction, the vice president now owns 82,203 shares in the company, valued at approximately $7,470,608.64. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other news, VP Stephen V. Drehobl sold 7,830 shares of Microchip Technology stock in a transaction on Thursday, May 16th. The stock was 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 approximately $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 Microchip Technology stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $90.88, for a total value of $908,800.00. Following the transaction, the vice president now owns 82,203 shares in the company, valued at approximately $7,470,608.64. The disclosure for this sale can be found here. Insiders have sold a total of 23,993 shares of company stock valued at $2,251,857 in the last 90 days. 2.07% of the stock is owned by insiders.

Analyst Ratings Changes

Several equities analysts recently commented on MCHP shares. Needham & Company LLC increased their price objective on shares of Microchip Technology from $90.00 to $100.00 and gave the company a “buy” rating in a research report on Tuesday, May 7th. Piper Sandler reaffirmed a “neutral” rating and issued a $90.00 price objective (up from $80.00) on shares of Microchip Technology in a research report on Tuesday, May 7th. UBS Group increased their price objective on shares of Microchip Technology from $95.00 to $103.00 and gave the company a “buy” rating in a research report on Tuesday, May 7th. TD Cowen decreased their price objective on shares of Microchip Technology from $90.00 to $80.00 and set a “hold” rating for the company in a research report on Friday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $100.00 price target on shares of Microchip Technology in a research report on Wednesday. Seven investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $99.15.

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.