Stock Traders Buy Large Volume of Microchip Technology Call Options (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of unusually large options trading on Friday. Stock investors acquired 28,913 call options on the stock. This is an increase of 220% compared to the average volume of 9,023 call options.

Insider Activity

In other news, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the transaction, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

Hedge funds have recently modified their holdings of the company. Parsons Capital Management Inc. RI bought a new stake in shares of Microchip Technology during the 2nd quarter valued at approximately $280,000. Mizuho Markets Cayman LP bought a new stake in shares of Microchip Technology during the second quarter worth $107,584,000. Boston Partners increased its holdings in shares of Microchip Technology by 38.0% during the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock worth $1,040,114,000 after buying an additional 4,076,112 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its stake in shares of Microchip Technology by 0.9% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 16,630,574 shares of the semiconductor company’s stock valued at $805,087,000 after acquiring an additional 152,434 shares during the last quarter. Finally, United Advisor Group LLC acquired a new stake in shares of Microchip Technology during the 2nd quarter valued at $380,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Bank of America increased their target price on shares of Microchip Technology from $67.00 to $72.00 and gave the company a “neutral” rating in a research report on Friday, December 5th. Cantor Fitzgerald reduced their price target on shares of Microchip Technology from $70.00 to $65.00 and set a “neutral” rating for the company in a research note on Friday, November 7th. Wells Fargo & Company lowered their price objective on shares of Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating on the stock in a research note on Friday, November 7th. Needham & Company LLC upped their target price on Microchip Technology from $73.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of Microchip Technology in a research note on Wednesday, December 3rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $74.95.

Microchip Technology Price Performance

Shares of MCHP stock opened at $67.18 on Friday. The firm’s 50 day moving average price is $60.42 and its two-hundred day moving average price is $64.94. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25. Microchip Technology has a 52-week low of $34.13 and a 52-week high of $77.20. The stock has a market cap of $36.31 billion, a PE ratio of -149.29, a PEG ratio of 2.12 and a beta of 1.47.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same quarter in the prior year, the business posted $0.46 EPS. The firm’s quarterly revenue was down 2.0% on a year-over-year basis. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. As a group, analysts forecast that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Monday, November 24th. Microchip Technology’s payout ratio is presently -404.44%.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.