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

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of some unusual options trading on Friday. Stock traders bought 74,216 call options on the company. This represents an increase of approximately 704% compared to the typical daily volume of 9,230 call options.

Insider Activity

In other news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the completion of the sale, the chief executive officer directly owned 9,922,319 shares in the company, valued at $799,242,795.45. This represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction of $216,273.88. Following the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at $1,516,184.71. This represents a 12.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 121,615 shares of company stock valued at $9,641,654. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MCHP. Winnow Wealth LLC bought a new position in shares of Microchip Technology during the 3rd quarter worth approximately $25,000. Root Financial Partners LLC purchased a new stake in shares of Microchip Technology during the third quarter valued at approximately $28,000. EFG International AG bought a new stake in Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. bought a new stake in Microchip Technology during the fourth quarter worth $29,000. Finally, Salomon & Ludwin LLC boosted its position in Microchip Technology by 219.3% in the third quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 329 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Stock Up 0.7%

MCHP stock opened at $77.73 on Friday. The stock’s 50 day simple moving average is $72.77 and its 200 day simple moving average is $66.19. The company has a market cap of $42.06 billion, a P/E ratio of -268.03, a price-to-earnings-growth ratio of 1.94 and a beta of 1.46. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. Microchip Technology has a fifty-two week low of $34.13 and a fifty-two week high of $83.35.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The firm had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s quarterly revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, research analysts expect that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be issued a dividend of $0.455 per share. The ex-dividend date is Monday, February 23rd. This represents a $1.82 annualized dividend and a yield of 2.3%. Microchip Technology’s dividend payout ratio is presently -627.59%.

Analyst Ratings Changes

A number of analysts have weighed in on MCHP shares. Zacks Research upgraded Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. KeyCorp restated an “overweight” rating and set a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Wolfe Research set a $85.00 target price on Microchip Technology in a research note on Tuesday, January 6th. Bank of America raised Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 price target on the stock in a research note on Wednesday, January 28th. Finally, Wall Street Zen upgraded Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus target price of $86.00.

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.