Microchip Technology Inc. (MCHP) Declares Dividend Increase – $0.36 Per Share

Microchip Technology Inc. (NASDAQ:MCHP) announced a quarterly dividend on Wednesday, November 7th, RTT News reports. Shareholders of record on Wednesday, November 21st will be given a dividend of 0.3645 per share by the semiconductor company on Wednesday, December 5th. This represents a $1.46 dividend on an annualized basis and a yield of 2.07%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.36.

Microchip Technology has increased its dividend payment by an average of 0.6% per year over the last three years and has raised its dividend annually for the last 16 consecutive years. Microchip Technology has a dividend payout ratio of 22.4% meaning its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $7.04 per share next year, which means the company should continue to be able to cover its $1.46 annual dividend with an expected future payout ratio of 20.7%.

MCHP stock traded up $0.27 during mid-day trading on Wednesday, reaching $70.30. The company had a trading volume of 3,343,561 shares, compared to its average volume of 3,198,389. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.80 and a current ratio of 1.32. The stock has a market capitalization of $16.43 billion, a price-to-earnings ratio of 13.55, a PEG ratio of 0.76 and a beta of 1.24. Microchip Technology has a one year low of $60.70 and a one year high of $104.20.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, August 9th. The semiconductor company reported $1.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.13. The company had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.21 billion. Microchip Technology had a return on equity of 36.33% and a net margin of 2.85%. The firm’s quarterly revenue was up 24.7% compared to the same quarter last year. During the same period last year, the business posted $1.31 earnings per share. As a group, analysts predict that Microchip Technology will post 6.36 EPS for the current fiscal year.

MCHP has been the topic of a number of recent research reports. Nomura cut their target price on Microchip Technology from $110.00 to $105.00 and set a “buy” rating on the stock in a research note on Friday, August 10th. Raymond James lowered Microchip Technology from an “outperform” rating to a “market perform” rating and set a $105.00 price target on the stock. in a report on Tuesday, September 25th. Morgan Stanley lowered their price target on Microchip Technology from $95.00 to $75.00 and set an “equal weight” rating on the stock in a report on Wednesday, October 10th. KeyCorp started coverage on Microchip Technology in a report on Tuesday, September 25th. They set a “sector weight” rating on the stock. Finally, Bank of America lowered Microchip Technology from a “buy” rating to a “neutral” rating and lowered their price target for the company from $115.00 to $95.00 in a report on Monday, September 17th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $110.00.

In related news, CFO James Eric Bjornholt sold 1,887 shares of Microchip Technology stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $84.33, for a total transaction of $159,130.71. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Stephen V. Drehobl sold 3,998 shares of Microchip Technology stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $84.33, for a total value of $337,151.34. Following the transaction, the vice president now directly owns 16,931 shares in the company, valued at $1,427,791.23. The disclosure for this sale can be found here. 2.13% of the stock is owned by insiders.

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About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive networking, computing, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity.

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Dividend History for Microchip Technology (NASDAQ:MCHP)

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