Pallas Capital Advisors LLC Acquires Shares in Microchip Technology

Pallas Capital Advisors LLC has recently acquired a significant position in Microchip Technology Incorporated (NASDAQ:MCHP). This acquisition took place during the fourth quarter of the year, as reported in the fund's latest 13F filing with the Securities and Exchange Commission. The firm purchased 103,167 shares of the semiconductor company, which is estimated to be worth around $5,917,000.

Additionally, other hedge funds have started to adjust their investments in Microchip Technology. For instance, Prospera Private Wealth LLC opened a new position in the company during the third quarter, valuing around $29,000. Similarly, Peterson Financial Group Inc. and Truvestments Capital LLC both invested approximately $34,000 in the same period, buying new stakes in the company. Wolff Wiese Magana LLC has increased its holdings by 55.2% recently and now owns 613 shares, valued at $49,000 after acquiring additional shares. Furthermore, Hobbs Group Advisors LLC significantly expanded its investment by 390.6%, holding 628 shares worth $50,000 following the purchase of an additional 500 shares. It is noteworthy that hedge funds and institutional investors collectively own a large portion, approximately 91.51%, of Microchip Technology's stock.

Stock Market Performance

On Monday, Microchip Technology's stock saw an increase of 1.3%, trading at $55.91. The trading volume reached 6,654,544 shares, compared to the average of 7,611,030 shares. Currently, the company has a market cap of $30.02 billion, a price-to-earnings (P/E) ratio of 39.10, and a beta of 1.52. The debt-to-equity ratio stands at 0.71, while the current ratio and quick ratio are 0.88 and 0.48, respectively. Over the past year, Microchip Technology's stock has seen a low of $54.47 and a high of $100.57. The fifty-day moving average is noted at $62.84, with a 200-day moving average at $74.80.

Quarterly Earnings Report

Microchip Technology recently announced its quarterly earnings on November 5th. The report indicated that the company achieved earnings of $0.46 per share, surpassing analysts' expectations of $0.43 by $0.03. The company’s return on equity was measured at 19.47%, with a net margin of 14.22%. Revenue for the quarter was reported at $1.16 billion, slightly above the anticipated $1.15 billion. However, compared to the previous year, the revenue experienced a decline of 48.4%. Analysts predict that Microchip Technology will report an earnings per share (EPS) of 1.33 for the current year.

Dividend Announcement

Recently, Microchip Technology declared a quarterly dividend, which was disbursed on December 6th. Investors on record as of November 22nd received a dividend of $0.455, an increase from the earlier amount of $0.45. This equates to an annualized dividend of $1.82 and a yield of 3.26%. The ex-dividend date was also set for November 22nd, and the company has a dividend payout ratio (DPR) of 127.27%.

Analyst Ratings and Price Targets

Several brokerage firms have shared their views on Microchip Technology's stock. Mizuho has adjusted their price target down from $85.00 to $72.00 while maintaining an 'outperform' rating. On the other hand, Rosenblatt Securities reiterated their 'buy' rating, with a target price of $90.00. Bank of America reduced their recommendation from 'neutral' to 'underperform' and cut the target price from $80.00 to $65.00. Susquehanna and TD Cowen also revised their price targets. The general consensus among analysts includes one 'sell' rating, five 'hold' ratings, and fourteen 'buy' ratings, leading to a moderate consensus rating of 'Moderate Buy' with an average target price of $87.11.

About Microchip Technology

Microchip Technology Incorporated specializes in the development, manufacturing, and sale of smart, connected, and secure embedded control solutions across the globe including the Americas, Europe, and Asia. The company's product range includes general-purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, 32-bit embedded mixed-signal microprocessors, and specialized microcontrollers for various applications such as automotive, industrial, computing, communications, and more.

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