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

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of some unusual options trading on Wednesday. Stock traders bought 141,002 call options on the company. This is an increase of approximately 1,252% compared to the average volume of 10,426 call options.

Microchip Technology Stock Down 2.2%

MCHP opened at $63.29 on Friday. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $83.35. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. The business’s 50-day moving average price is $73.55 and its 200-day moving average price is $66.56. The company has a market cap of $34.25 billion, a P/E ratio of -218.24, a P/E/G ratio of 1.63 and a beta of 1.45.

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

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were issued a $0.455 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.82 annualized dividend and a dividend yield of 2.9%. Microchip Technology’s dividend payout ratio (DPR) is currently -627.59%.

Insiders Place Their Bets

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Winnow Wealth LLC bought a new stake in Microchip Technology in the 3rd quarter worth $25,000. Root Financial Partners LLC bought a new position in shares of Microchip Technology during the third quarter valued at about $28,000. EFG International AG bought a new position in shares of Microchip Technology during the fourth quarter valued at about $29,000. Miller Capital Partners Inc. purchased a new stake in shares of Microchip Technology during the fourth quarter worth about $29,000. Finally, Salomon & Ludwin LLC boosted its holdings in shares of Microchip Technology by 219.3% during 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 period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MCHP. Weiss Ratings upgraded Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 6th. Susquehanna boosted their target price on Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a research report on Thursday, January 22nd. Needham & Company LLC upped their target price on Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. Wolfe Research set a $85.00 price target on shares of Microchip Technology in a research report on Tuesday, January 6th. Finally, Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $86.00.

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.