Investors Purchase High Volume of Call Options on Microchip Technology (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of some unusual options trading on Monday. Stock traders acquired 125,441 call options on the company. This represents an increase of approximately 485% compared to the average daily volume of 21,455 call options.

Analyst Ratings Changes

A number of research analysts have weighed in on MCHP shares. Susquehanna raised their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research note on Friday, May 8th. BMO Capital Markets assumed coverage on shares of Microchip Technology in a research note on Friday. They issued an “outperform” rating and a $95.00 price target on the stock. Wells Fargo & Company dropped their price objective on 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. UBS Group reiterated a “buy” rating and issued a $120.00 price objective (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. Finally, Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, August 17th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $98.67.

Insider Buying and Selling

In other news, CFO James Eric Bjornholt sold 837 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $80.26, for a total transaction of $67,177.62. Following the completion of the sale, the chief financial officer owned 30,960 shares of the company’s stock, valued at $2,484,849.60. The trade was a 2.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director directly owned 17,665 shares of the company’s stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 8,837 shares of company stock valued at $847,338. Corporate insiders own 1.79% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of MCHP. California State Teachers Retirement System increased its holdings in Microchip Technology by 9,307.4% in the second quarter. California State Teachers Retirement System now owns 74,723,990 shares of the semiconductor company’s stock valued at $6,814,828,000 after buying an additional 73,929,678 shares during the last quarter. Wedmont Private Capital purchased a new stake in Microchip Technology during the 2nd quarter worth about $262,000. Widmann Financial Services Inc. boosted its position in shares of Microchip Technology by 6.1% during the 2nd quarter. Widmann Financial Services Inc. now owns 21,208 shares of the semiconductor company’s stock worth $1,934,000 after acquiring an additional 1,214 shares in the last quarter. HB Wealth Management LLC boosted its position in shares of Microchip Technology by 1.7% during the 2nd quarter. HB Wealth Management LLC now owns 29,709 shares of the semiconductor company’s stock worth $2,710,000 after acquiring an additional 508 shares in the last quarter. Finally, Saudi Central Bank increased its holdings in shares of Microchip Technology by 89.9% in the 2nd quarter. Saudi Central Bank now owns 37,879 shares of the semiconductor company’s stock valued at $3,455,000 after acquiring an additional 17,930 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Down 2.7%

Shares of Microchip Technology stock traded down $2.06 during trading hours on Monday, reaching $74.02. 2,822,903 shares of the company were exchanged, compared to its average volume of 10,438,379. The firm has a market cap of $40.20 billion, a PE ratio of 110.48, a PEG ratio of 0.53 and a beta of 1.76. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The stock’s fifty day moving average is $84.29 and its 200 day moving average is $81.51.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the business posted $0.27 EPS. The business’s quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, equities research analysts forecast that Microchip Technology will post 3.16 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.5%. The ex-dividend date is Monday, August 24th. Microchip Technology’s payout ratio is 271.64%.

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.