Harvey Partners LLC Invests in Microchip Technology Inc.

During the third quarter, Harvey Partners LLC made a significant move by acquiring a new position in Microchip Technology Incorporated (NASDAQ:MCHP). According to the latest filing with the Securities and Exchange Commission (SEC), the firm purchased 256,000 shares of Microchip Technology, valued at about $20.55 million. This acquisition accounts for roughly 2.3% of Harvey Partners LLC's total portfolio, ranking Microchip Technology as its 16th largest investment.

Recent Investor Activity

Several other institutional investors have also adjusted their holdings in Microchip Technology lately. Empowered Funds LLC increased its stake by 25.7% in the third quarter, now owning 96,163 shares worth approximately $7.72 million after acquiring an additional 19,663 shares. Similarly, Harvest Fund Management Co. Ltd raised its investment by 52.1%, totaling 24,713 shares valued at about $1.98 million after buying an extra 8,467 shares.

Cerity Partners LLC boosted its positions by 14.2%, now holding 260,063 shares worth around $20.88 million following recent purchases of 32,340 shares. Additionally, Pinnacle Associates Ltd raised its ownership by 50%, acquiring 105,694 shares valued at $8.49 million after an increase of 35,213 shares.

Aigen Investment Management LP also entered the scene, securing a new stake in Microchip Technology worth $2.39 million in the latest quarter. Currently, institutional investors and hedge funds control about 91.51% of Microchip Technology's stock.

Stock Performance Overview

On Tuesday, shares of Microchip Technology opened at $70.31. The company has demonstrated a current ratio of 0.88, a quick ratio of 0.48, and a debt-to-equity ratio of 0.71. The stock's performance shows a 50-day simple moving average at $73.57 and a 200-day simple moving average at $82.08. Over the past year, Microchip Technology's shares have fluctuated between a low of $62.63 and a high of $100.57, with a market capitalization of approximately $37.76 billion. Its price-to-earnings (PE) ratio stands at 49.17 while having a beta of 1.50.

Recent Earnings and Dividends

Microchip Technology recently reported its earnings, surpassing expectations. For the quarter ending November 5th, the company announced earnings of $0.46 per share, exceeding the consensus estimate of $0.43 by $0.03. Its revenues reached $1.16 billion, slightly above the anticipated $1.15 billion. However, this marked a 48.4% decline compared to the previous year's quarter when the company earned $1.54 per share.

Looking ahead, analysts predict that Microchip Technology will report an earnings per share (EPS) of 1.38 for the current year. Moreover, the firm recently declared a quarterly dividend of $0.455 per share, an increase from the prior dividend of $0.45, to be paid on December 6th to shareholders of record as of November 22nd. This corresponds to an annualized dividend of $1.82, offering a yield of 2.59%, despite a dividend payout ratio (DPR) of 127.27%.

Analyst Ratings and Outlook

Wall Street analysts have varied opinions about Microchip Technology. Citigroup reduced its price target from $92.00 to $82.00 while maintaining a "buy" rating. Meanwhile, Evercore ISI left their "outperform" rating intact, although they dropped their price target from $101.00 to $95.00. Needham & Company LLC modified their target from $96.00 to $85.00, also retaining a "buy" rating. StockNews.com shifted Microchip Technology’s rating from "hold" to "sell". Lastly, TD Cowen decreased their target from $80.00 to $70.00 while labeling it as a "hold". Overall, one analyst has issued a sell rating, five a hold, and fourteen a buy, leading to an average rating of "Moderate Buy" with a target price of $92.00.

Company Overview

Microchip Technology Incorporated specializes in creating and selling advanced embedded control solutions across the globe, including the Americas, Europe, and Asia. Its product line includes various microcontrollers and microprocessors designed for numerous applications, such as automotive, industrial, communications, and more.

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