Microchip Technology Incorporated (NASDAQ:MCHP) Plans Dividend Increase – $0.46 Per Share

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Tuesday, November 5th,RTT News reports. Stockholders of record on Friday, November 22nd will be paid 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 2.79%. The ex-dividend date of this dividend is Friday, November 22nd. This is a boost from Microchip Technology’s previous quarterly dividend of $0.45.

Microchip Technology has raised its dividend by an average of 29.3% per year over the last three years and has increased its dividend annually for the last 23 consecutive years. Microchip Technology has a dividend payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microchip Technology to earn $2.26 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 80.5%.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $65.12 on Thursday. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.88 and a quick ratio of 0.48. Microchip Technology has a one year low of $62.63 and a one year high of $100.57. The stock has a 50-day moving average of $75.00 and a 200-day moving average of $83.54. The stock has a market cap of $34.97 billion, a PE ratio of 45.54 and a beta of 1.53.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Tuesday, November 5th. The semiconductor company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.43 by $0.03. The business had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Microchip Technology had a net margin of 14.22% and a return on equity of 19.47%. The firm’s revenue was down 48.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.54 EPS. As a group, sell-side analysts expect that Microchip Technology will post 1.38 earnings per share for the current year.

Analyst Ratings Changes

MCHP has been the topic of several recent research reports. Evercore ISI reiterated an “outperform” rating and issued a $95.00 price target (down from $101.00) on shares of Microchip Technology in a research note on Wednesday, November 6th. Needham & Company LLC cut their price objective on shares of Microchip Technology from $96.00 to $85.00 and set a “buy” rating for the company in a research report on Wednesday, November 6th. Jefferies Financial Group dropped their price target on Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Susquehanna decreased their price target on Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a research note on Wednesday, November 6th. Finally, Piper Sandler lowered their target price on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a report on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $92.00.

Insider Buying and Selling

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of the stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total transaction of $175,551.00. Following the completion of the transaction, the chief financial officer now owns 33,257 shares in the company, valued at $2,710,445.50. This trade represents a 6.08 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.10% of the stock is owned by company 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.