Stock Traders Purchase High Volume of Call Options on Microchip Technology (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of some unusual options trading on Friday. Stock traders bought 27,279 call options on the company. This is an increase of 56% compared to the average daily volume of 17,533 call options.

Wall Street Analyst Weigh In

Several research firms recently weighed in on MCHP. UBS Group restated a “buy” rating on shares of Microchip Technology in a report on Tuesday, June 2nd. Susquehanna lifted their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research report on Friday, May 8th. Citigroup boosted their target price on Microchip Technology from $91.00 to $113.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Wells Fargo & Company reduced their target price on Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a report on Monday, July 20th. Finally, Barclays increased their price target on Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research report on Monday, May 11th. Four analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $99.76.

Microchip Technology Stock Performance

Shares of Microchip Technology stock traded up $0.38 on Friday, reaching $75.39. 4,165,891 shares of the company traded hands, compared to its average volume of 10,478,377. The company has a 50 day moving average of $89.25 and a 200 day moving average of $81.20. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. Microchip Technology has a 52 week low of $48.52 and a 52 week high of $105.91. The firm has a market capitalization of $40.94 billion, a PE ratio of 358.66, a PEG ratio of 0.72 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The company had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the firm posted $0.11 EPS. Microchip Technology’s revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts forecast that Microchip Technology will post 2.7 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology’s dividend payout ratio is currently 866.67%.

Insider Activity at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the transaction, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the transaction, the chief operating officer owned 130,508 shares in the company, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 26,750 shares of company stock valued at $2,543,170. 1.79% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. EFG International AG bought a new stake in Microchip Technology in the 4th quarter valued at about $29,000. Miller Capital Partners Inc. bought a new position in Microchip Technology during the fourth quarter worth about $29,000. Reflection Asset Management bought a new position in Microchip Technology during the fourth quarter worth about $33,000. Garton & Associates Financial Advisors LLC purchased a new position in shares of Microchip Technology in the fourth quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after purchasing an additional 513 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.