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

Microchip Technology Incorporated (NASDAQ:MCHP) saw unusually large options trading activity on Friday. Stock traders bought 27,279 call options on the stock. This represents an increase of approximately 56% compared to the average daily volume of 17,533 call options.

Microchip Technology Trading Down 1.0%

Shares of Microchip Technology stock opened at $74.29 on Friday. The company has a 50-day moving average of $88.87 and a two-hundred day moving average of $81.15. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. The stock has a market cap of $40.34 billion, a PE ratio of 353.78, a price-to-earnings-growth ratio of 0.75 and a beta of 1.74.

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

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders 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 yield of 2.4%. The ex-dividend date was Friday, May 22nd. Microchip Technology’s payout ratio is presently 866.67%.

Wall Street Analyst Weigh In

MCHP has been the subject of a number of analyst reports. Cantor Fitzgerald reissued an “overweight” rating and set a $125.00 target price on shares of Microchip Technology in a research note on Wednesday, May 13th. Truist Financial raised their price target on Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a report on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Zacks Research raised Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Finally, Weiss Ratings cut Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, July 24th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology currently has an average rating of “Moderate Buy” and a consensus price target of $99.76.

Insider Transactions at Microchip Technology

In other news, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total value of $487,600.00. Following the sale, the chief operating officer owned 130,508 shares of the company’s stock, valued at $12,727,140.16. The trade was a 3.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Matthew W. Chapman sold 3,000 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $97.52, for a total transaction of $292,560.00. Following the transaction, the director owned 17,665 shares in the company, valued at approximately $1,722,690.80. This trade represents a 14.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 26,750 shares of company stock worth $2,543,170. Company insiders own 1.79% of the company’s stock.

Institutional Trading of Microchip Technology

Several large investors have recently bought and sold shares of MCHP. Belpointe Asset Management LLC purchased a new position in shares of Microchip Technology in the second quarter valued at $225,000. Fortis Capital Advisors LLC purchased a new stake in shares of Microchip Technology in the 2nd quarter worth about $225,000. Soltis Investment Advisors LLC grew its stake in Microchip Technology by 1.2% in the 2nd quarter. Soltis Investment Advisors LLC now owns 23,219 shares of the semiconductor company’s stock valued at $2,118,000 after acquiring an additional 274 shares during the last quarter. Daymark Wealth Partners LLC acquired a new stake in Microchip Technology in the 2nd quarter valued at about $297,000. Finally, Texas Bank & Trust Co increased its holdings in Microchip Technology by 0.9% during the 2nd quarter. Texas Bank & Trust Co now owns 21,699 shares of the semiconductor company’s stock valued at $1,979,000 after acquiring an additional 185 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

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.