Microchip Technology (NASDAQ:MCHP) Stock Sees Heavy Call Option Buying

Microchip Technology Incorporated (NASDAQ:MCHP) saw some unusual options trading on Wednesday. Stock traders bought 247,022 call options on the company. This represents an increase of 1,221% compared to the typical volume of 18,696 call options.

Insider Buying and Selling

In other Microchip Technology news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the sale, the chief financial officer owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Ellsworth Advisors LLC lifted its stake in shares of Microchip Technology by 1.4% in the 3rd quarter. Ellsworth Advisors LLC now owns 39,902 shares of the semiconductor company’s stock valued at $3,103,000 after purchasing an additional 567 shares during the period. Iams Wealth Management LLC boosted its holdings in Microchip Technology by 27.0% during the third quarter. Iams Wealth Management LLC now owns 17,178 shares of the semiconductor company’s stock worth $1,336,000 after buying an additional 3,656 shares in the last quarter. V Square Quantitative Management LLC boosted its holdings in Microchip Technology by 22.0% during the third quarter. V Square Quantitative Management LLC now owns 7,393 shares of the semiconductor company’s stock worth $575,000 after buying an additional 1,335 shares in the last quarter. Community Financial Services Group LLC boosted its holdings in Microchip Technology by 54.9% during the third quarter. Community Financial Services Group LLC now owns 477 shares of the semiconductor company’s stock worth $37,000 after buying an additional 169 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its position in Microchip Technology by 101.8% during the third quarter. Assenagon Asset Management S.A. now owns 875,059 shares of the semiconductor company’s stock valued at $68,053,000 after buying an additional 441,479 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $74.26 on Friday. The stock has a market cap of $40.32 billion, a PE ratio of 43.44, a price-to-earnings-growth ratio of 0.50 and a beta of 1.77. The business has a 50-day simple moving average of $75.76 and a 200-day simple moving average of $82.50. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91.

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

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were given a $0.4550 dividend. This represents a $1.82 annualized dividend and a yield of 2.5%. The ex-dividend date was Monday, August 24th. Microchip Technology’s dividend payout ratio is currently 271.64%.

Wall Street Analyst Weigh In

MCHP has been the topic of several recent analyst reports. UBS Group restated a “buy” rating and set a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Wells Fargo & Company lowered their target price on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research note on Monday, July 20th. Citigroup lowered their target price on shares of Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Truist Financial dropped their target price on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research report on Friday, August 7th. Finally, TD Cowen dropped their target price on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research report on Monday, July 13th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.67.

Microchip Technology Company Profile

Microchip Technology Inc is a semiconductor company that develops and manufactures embedded control solutions for automotive, industrial, aerospace and defense, communications, consumer, and computing applications. Its products are designed to help customers manage processing, connectivity, power, timing, security, and data storage within electronic systems.

The company’s product portfolio includes microcontrollers, microprocessors, analog and mixed-signal devices, power-management products, timing and synchronization solutions, memory products, connectivity components, and field-programmable gate arrays.