Microchip Technology Incorporated (NASDAQ:MCHP) Announces Dividend Increase – $0.45 Per Share

Microchip Technology Incorporated (NASDAQ:MCHP) declared a quarterly dividend on Monday, May 6th, RTT News reports. Stockholders of record on Wednesday, May 22nd will be paid a dividend of 0.452 per share by the semiconductor company on Wednesday, June 5th. This represents a $1.81 dividend on an annualized basis and a dividend yield of 1.96%. The ex-dividend date of this dividend is Tuesday, May 21st. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45.

Microchip Technology has increased its dividend payment 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 dividend payout ratio of 40.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $2.72 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 66.2%.

Microchip Technology Trading Down 1.8 %

Shares of Microchip Technology stock opened at $92.06 on Wednesday. The stock has a market capitalization of $49.75 billion, a P/E ratio of 21.51, a P/E/G ratio of 2.79 and a beta of 1.60. Microchip Technology has a 52-week low of $68.75 and a 52-week high of $96.14. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.58 and a current ratio of 0.98. The stock’s 50-day simple moving average is $88.45 and its 200 day simple moving average is $85.37.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Monday, May 6th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.57. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.33 billion. Microchip Technology had a net margin of 27.59% and a return on equity of 45.59%. The company’s quarterly revenue was down 40.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.56 earnings per share. As a group, research analysts anticipate that Microchip Technology will post 4.64 EPS for the current year.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 1,970 shares of the company’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $83.90, for a total transaction of $165,283.00. Following the completion of the sale, the chief financial officer now directly owns 32,893 shares in the company, valued at $2,759,722.70. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 2.07% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several brokerages have recently weighed in on MCHP. B. Riley lifted their price target on Microchip Technology from $105.00 to $110.00 and gave the company a “buy” rating in a research report on Tuesday. Wolfe Research raised Microchip Technology from a “peer perform” rating to an “outperform” rating and set a $105.00 target price for the company in a report on Thursday, January 18th. KeyCorp upped their price target on Microchip Technology from $90.00 to $110.00 and gave the company an “overweight” rating in a research report on Tuesday. Susquehanna upped their price target on Microchip Technology from $100.00 to $105.00 and gave the company a “positive” rating in a research report on Tuesday. Finally, UBS Group upped their price target on Microchip Technology from $95.00 to $103.00 and gave the company a “buy” rating in a research report on Tuesday. Six equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus price target of $98.47.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells 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 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.