The Vanguard Group, Inc. recently announced the acquisition of new stake in Microchip Technology Incorporated (NASDAQ:MCHP). The institutional investor has increased its shareholding in the Technology company by 1.08% to 64.47 million shares with purchase of 0.69 million shares. This fresh investment now brings its stake to 11.84% valued currently at $6.06 billion. In addition, BlackRock Fund Advisors raised its holdings by 1.76 million to 32.71 million shares. And T. Rowe Price Investment Manageme has lifted its position by 2.96% or 0.65 million shares – to 22.81 million shares.
With over 3.5 million Microchip Technology Incorporated (MCHP) shares trading Tuesday and a closing price of $78.37 on the day, the dollar volume was approximately $274.62 million. The shares have shown a negative half year performance of -3.58% and its price on 09/12/23 lost nearly -1.37%. Currently, there are 545.10M common shares owned by the public and among those 532.52M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for MCHP have a consensus price objective of $97.65. The analysts have set the share’s price value over the next 12 months at a high of $110.00 and a low of $85.00. The average price target is 19.37% above its recent price level and an upside to the estimated low will see the stock gain 7.8% over that period. But an upside of 28.75% will see the stock hit the forecast high price target while median target price for the stock is $100.00.
Insiders at the company have transacted a total of 96 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 48 of these insider trades were purchases, accounting for 273,646 shares. Insider sales of the common stock occurred on 48 occasions, with total insider shares sold totaling 116,054 shares.
The top 3 mutual fund holders in Microchip Technology Incorporated are Vanguard Total Stock Market ETF, Dodge & Cox Stock Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market ETF owns 17.06 million shares of the company’s stock, all valued at over $1.6 billion. The company sold 18467.0 shares recently to bring their total holdings to about 3.13% of the shares outstanding. Dodge & Cox Stock Fund sold -0.17 million shares to see its total holdings shrink to 14.74 million shares valued at over $1.38 billion and representing 2.71% of the shares outstanding. Vanguard 500 Index Fund bought 78850.0 shares to bring its total holdings to over 13.12 million shares at a value of $1.23 billion. Vanguard 500 Index Fund now owns shares totaling to 2.41% of the shares outstanding.
Shares of Microchip Technology Incorporated (NASDAQ: MCHP) opened at $78.80, down -$0.66 from a prior closing price of $79.46. However, the script later moved the day high at 79.95, down -1.37%. The company’s stock has a 5-day price change of -3.91% and -5.49% over the past three months. MCHP shares are trading 11.56% year to date (YTD), with the 12-month market performance up to 17.04% higher. It has a 12-month low price of $54.77 and touched a high of $94.30 over the same period. MCHP has an average intraday trading volume of 4.89 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.59%, -8.38%, and -2.17% respectively.
Institutional ownership of Microchip Technology Incorporated (NASDAQ: MCHP) shares accounts for 93.30% of the company’s 545.10M shares outstanding. Mutual fund holders own 34.26%, while other institutional holders and individual stakeholders account for 58.94% and 2.12% respectively.
It has a market capitalization of $42.83B and a beta (3y monthly) value of 1.63. The stock’s trailing 12-month PE ratio is 18.13, while the earnings-per-share (ttm) stands at $4.32. The company has a PEG of 1.50 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 0.88. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.26% over the week and 2.40% over the month.
Analysts forecast that Microchip Technology Incorporated (MCHP) will achieve an EPS of $1.61 for the current quarter, $1.44 for the next quarter and $6.14 for 2025. The lowest estimate earnings-per-share for the quarter is $1.48 while analysts give the company a high EPS estimate of $1.65. Comparatively, EPS for the current quarter was $1.46 a year ago. Earnings per share for the fiscal year are expected to increase by 76.80%, and 0.74% over the next financial year. EPS should shrink at an annualized rate of 12.10% over the next five years, compared to 20.90% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate Microchip Technology Incorporated (MCHP) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 17 Wall Street analysts polled rate the stock as a buy, while 10 of the 27 advise that investors “hold,” and 0 rated it as a “Sell.”