Microchip Technology Sees Unusually High Options Volume (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of some unusual options trading on Wednesday. Stock investors purchased 16,476 call options on the stock. This represents an increase of 52% compared to the typical volume of 10,867 call options.

Microchip Technology Stock Performance

NASDAQ MCHP traded up $4.24 during trading on Wednesday, reaching $62.10. 7,947,139 shares of the company’s stock were exchanged, compared to its average volume of 8,935,210. The company has a debt-to-equity ratio of 1.12, a current ratio of 2.25 and a quick ratio of 1.23. The business has a 50 day moving average price of $56.58 and a 200-day moving average price of $68.22. The stock has a market capitalization of $33.40 billion, a P/E ratio of 110.95 and a beta of 1.50. Microchip Technology has a fifty-two week low of $50.21 and a fifty-two week high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. Sell-side analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 7th. Stockholders of record on Monday, February 24th will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.93%. The ex-dividend date of this dividend is Monday, February 24th. Microchip Technology’s dividend payout ratio is presently 325.00%.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Jefferies Financial Group dropped their target price on shares of Microchip Technology from $100.00 to $90.00 and set a “buy” rating on the stock in a report on Wednesday, November 6th. Evercore ISI restated an “outperform” rating and set a $95.00 price objective (down from $101.00) on shares of Microchip Technology in a report on Wednesday, November 6th. Morgan Stanley reduced their target price on shares of Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating for the company in a research note on Tuesday, February 4th. Needham & Company LLC dropped their price target on Microchip Technology from $85.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, February 7th. Finally, Susquehanna reduced their price objective on Microchip Technology from $95.00 to $90.00 and set a “positive” rating for the company in a research report on Wednesday, November 6th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $77.11.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Pallas Capital Advisors LLC acquired a new position in shares of Microchip Technology in the fourth quarter valued at approximately $5,917,000. Consolidated Planning Corp acquired a new position in Microchip Technology in the 4th quarter valued at $308,000. Quadrature Capital Ltd bought a new position in Microchip Technology during the 3rd quarter worth $3,312,000. Symphony Financial Ltd. Co. acquired a new stake in shares of Microchip Technology during the fourth quarter worth $520,000. Finally, Benjamin Edwards Inc. boosted its position in shares of Microchip Technology by 5,185.4% in the third quarter. Benjamin Edwards Inc. now owns 9,408 shares of the semiconductor company’s stock valued at $755,000 after acquiring an additional 9,230 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

About Microchip Technology

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.