Microchip Technology Incorporated (NASDAQ:MCHP) Declares Quarterly Dividend of $0.46

Microchip Technology Incorporated (NASDAQ:MCHP) announced a quarterly dividend on Tuesday, November 5th,RTT News reports. Shareholders 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 2.79%. The ex-dividend date 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 raised its dividend every year for the last 23 years. Microchip Technology has a payout ratio of 72.2% meaning its dividend is sufficiently covered by earnings. 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 Price Performance

Microchip Technology stock opened at $65.12 on Thursday. The stock has a market cap of $34.97 billion, a price-to-earnings ratio of 45.54 and a beta of 1.53. The firm has a 50-day moving average of $75.00 and a two-hundred day moving average of $83.54. Microchip Technology has a 1 year low of $62.63 and a 1 year high of $100.57. 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 (NASDAQ:MCHP) last announced its quarterly earnings results on Tuesday, November 5th. The semiconductor company reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.03. The firm had revenue of $1.16 billion during 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 company’s revenue was down 48.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.54 EPS. On average, research analysts forecast that Microchip Technology will post 1.38 earnings per share for the current year.

Wall Street Analysts Forecast Growth

MCHP has been the subject of a number of recent analyst reports. Susquehanna lowered their price objective on Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a research report on Wednesday, November 6th. Piper Sandler cut their price objective on shares of Microchip Technology from $100.00 to $85.00 and set an “overweight” rating on the stock in a report on Wednesday, November 6th. Truist Financial lowered shares of Microchip Technology from a “buy” rating to a “hold” rating and cut their price target for the company from $89.00 to $80.00 in a research note on Monday, September 23rd. JPMorgan Chase & Co. lowered their price objective on shares of Microchip Technology from $110.00 to $100.00 and set an “overweight” rating for the company in a research note on Friday, August 2nd. Finally, Needham & Company LLC cut their target price on Microchip Technology from $96.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday, November 6th. One analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology has a consensus rating of “Moderate Buy” and an average price target of $92.00.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 2,154 shares of Microchip Technology 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 sale, the chief financial officer now owns 33,257 shares of the company’s stock, valued at $2,710,445.50. The trade was a 6.08 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.10% of the stock is currently owned by corporate 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.