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. Investors 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 dividend on an annualized basis and a yield of 2.47%. 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 raised its dividend annually for the last 23 consecutive years. Microchip Technology has a payout ratio of 54.8% indicating that its dividend is sufficiently covered by earnings. 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 Down 1.9 %

NASDAQ:MCHP traded down $1.43 during midday trading on Wednesday, reaching $73.66. The company had a trading volume of 1,933,141 shares, compared to its average volume of 5,911,669. The firm has a market capitalization of $39.52 billion, a price-to-earnings ratio of 30.04 and a beta of 1.53. The stock’s fifty day simple moving average is $77.17 and its 200-day simple moving average is $85.20. Microchip Technology has a 12-month low of $71.76 and a 12-month high of $100.57. 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 Analyst Weigh In

A number of analysts have issued reports on the company. Needham & Company LLC decreased their price target on Microchip Technology from $96.00 to $85.00 and set a “buy” rating for the company in a report on Wednesday. TD Cowen cut their target price on Microchip Technology from $80.00 to $70.00 and set a “hold” rating on the stock in a research report on Wednesday. Bank of America cut Microchip Technology from a “buy” rating to a “neutral” rating and dropped their price target for the company from $110.00 to $90.00 in a research report on Friday, August 2nd. KeyCorp reduced their target price on Microchip Technology from $100.00 to $95.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Piper Sandler cut their price target on Microchip Technology from $100.00 to $85.00 and set an “overweight” rating for the company in a report on Wednesday. Six analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $94.68.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of the firm’s stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $81.50, for a total value of $175,551.00. Following the sale, the chief financial officer now owns 33,257 shares in the company, valued at approximately $2,710,445.50. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.10% of the stock is owned by company insiders.

About Microchip Technology

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.