Microchip Technology Target of Unusually Large Options Trading (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of unusually large options trading activity on Monday. Traders bought 125,441 call options on the stock. This is an increase of 485% compared to the average volume of 21,455 call options.

Analyst Ratings Changes

MCHP has been the subject of several analyst reports. Rosenblatt Securities reissued a “buy” rating and set a $120.00 price target on shares of Microchip Technology in a research report on Friday, August 7th. TD Cowen dropped their target price on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a report on Monday, July 13th. Needham & Company LLC raised their target price on Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Wall Street Zen upgraded Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Finally, Citigroup lowered their price target on Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $98.67.

Insiders Place Their Bets

In related news, CFO James Eric Bjornholt sold 837 shares of Microchip Technology stock in a transaction on Monday, August 17th. The shares were sold at an average price of $80.26, for a total value of $67,177.62. Following the transaction, the chief financial officer owned 30,960 shares in the company, valued at $2,484,849.60. This trade represents a 2.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Richard J. Simoncic sold 5,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at $12,727,140.16. This represents a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 8,837 shares of company stock valued at $847,338. 1.79% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds have recently made changes to their positions in MCHP. TOP Private Wealth LLC. purchased a new stake in Microchip Technology in the second quarter worth about $29,000. EFG International AG acquired a new position in shares of Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. purchased a new position in Microchip Technology during the 4th quarter worth $29,000. Continuum Advisory LLC purchased a new position in Microchip Technology during the 2nd quarter worth $30,000. Finally, Johnson Financial Group Inc. purchased a new position in Microchip Technology during the 2nd quarter worth $31,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Stock Performance

NASDAQ MCHP traded down $2.06 on Monday, hitting $74.02. 2,822,903 shares of the company traded hands, compared to its average volume of 10,438,379. The business’s 50 day moving average price is $84.29 and its 200-day moving average price is $81.51. The company has a market capitalization of $40.20 billion, a price-to-earnings ratio of 110.48, a P/E/G ratio of 0.53 and a beta of 1.76. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83.

Microchip Technology (NASDAQ:MCHP) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business earned $0.27 earnings per share. Microchip Technology’s revenue for the quarter was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities analysts expect that Microchip Technology will post 3.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.82 annualized dividend and a dividend yield of 2.5%. Microchip Technology’s payout ratio is currently 271.64%.

Microchip Technology Company Profile

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.