Microchip Technology Inc. (NASDAQ:MCHP) Plans Dividend Increase – $0.37 Per Share

Microchip Technology Inc. (NASDAQ:MCHP) declared a quarterly dividend on Tuesday, August 6th, RTT News reports. Investors of record on Wednesday, August 21st will be paid a dividend of 0.366 per share by the semiconductor company on Wednesday, September 4th. This represents a $1.46 annualized dividend and a dividend yield of 1.72%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.37.

Microchip Technology has increased its dividend payment by an average of 0.6% annually over the last three years and has increased its dividend annually for the last 17 consecutive years. Microchip Technology has a payout ratio of 22.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microchip Technology to earn $6.74 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 21.7%.

Shares of MCHP traded up $1.44 on Tuesday, hitting $85.06. 3,787,533 shares of the stock traded hands, compared to its average volume of 2,735,986. The company has a quick ratio of 0.63, a current ratio of 0.93 and a debt-to-equity ratio of 1.69. The stock has a market cap of $19.90 billion, a price-to-earnings ratio of 13.99, a P/E/G ratio of 1.18 and a beta of 1.41. The firm has a 50 day moving average price of $90.29. Microchip Technology has a 1 year low of $60.70 and a 1 year high of $101.35.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Tuesday, May 7th. The semiconductor company reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.08. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.33 billion. Microchip Technology had a net margin of 6.65% and a return on equity of 29.27%. During the same quarter in the prior year, the firm posted $1.40 earnings per share. The company’s quarterly revenue was up 32.6% compared to the same quarter last year. On average, sell-side analysts expect that Microchip Technology will post 5.56 earnings per share for the current fiscal year.

Several equities analysts recently commented on MCHP shares. Wells Fargo & Co upped their price target on shares of Microchip Technology from $105.00 to $115.00 and gave the stock an “outperform” rating in a research report on Monday, July 29th. They noted that the move was a valuation call. ValuEngine lowered shares of Microchip Technology from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. BidaskClub lowered shares of Microchip Technology from a “hold” rating to a “sell” rating in a research report on Tuesday. BMO Capital Markets dropped their price target on shares of Microchip Technology from $118.00 to $110.00 and set an “outperform” rating for the company in a research report on Thursday, May 9th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $115.00 price target on shares of Microchip Technology in a research report on Monday, May 6th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and twelve have given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $103.89.

In other news, VP James Eric Bjornholt sold 2,188 shares of the stock in a transaction on Wednesday, May 22nd. The shares were sold at an average price of $80.99, for a total value of $177,206.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.21% of the stock is owned by corporate insiders.

Microchip Technology Company Profile

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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