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

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of some unusual options trading on Friday. Stock investors purchased 27,279 call options on the stock. This represents an increase of approximately 56% compared to the average daily volume of 17,533 call options.

Microchip Technology Stock Performance

Microchip Technology stock opened at $74.29 on Friday. The company has a market cap of $40.34 billion, a PE ratio of 353.78, a PEG ratio of 0.75 and a beta of 1.74. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85. Microchip Technology has a 1 year low of $48.52 and a 1 year high of $105.91. The company’s 50-day moving average is $88.87 and its two-hundred day moving average is $81.15.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. Microchip Technology’s revenue was up 35.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts anticipate that Microchip Technology will post 2.7 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology’s payout ratio is currently 866.67%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Truist Financial raised their price objective on shares of Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a research report on Friday, May 8th. TD Cowen decreased their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Weiss Ratings lowered shares of Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, July 24th. Barclays raised their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a report on Monday, May 11th. Finally, JPMorgan Chase & Co. upped their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Microchip Technology presently has an average rating of “Moderate Buy” and a consensus target price of $99.76.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 3,667 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total value of $333,220.29. Following the completion of the sale, the chief financial officer directly owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of Microchip Technology stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $93.44, for a total value of $467,200.00. Following the completion of the transaction, the chief operating officer directly owned 135,508 shares of the company’s stock, valued at $12,661,867.52. This represents a 3.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 26,750 shares of company stock valued at $2,543,170. 1.79% of the stock is currently owned by corporate insiders.

Institutional Trading of Microchip Technology

Institutional investors and hedge funds have recently made changes to their positions in the business. Texas Bank & Trust Co boosted its position in shares of Microchip Technology by 0.9% in the 2nd quarter. Texas Bank & Trust Co now owns 21,699 shares of the semiconductor company’s stock worth $1,979,000 after purchasing an additional 185 shares during the last quarter. MGO One Seven LLC increased its holdings in Microchip Technology by 4.2% in the second quarter. MGO One Seven LLC now owns 6,590 shares of the semiconductor company’s stock valued at $601,000 after purchasing an additional 265 shares during the last quarter. Zions Bancorporation National Association UT lifted its stake in Microchip Technology by 17.0% in the second quarter. Zions Bancorporation National Association UT now owns 1,614 shares of the semiconductor company’s stock valued at $147,000 after buying an additional 235 shares during the period. Aberdeen Group plc lifted its stake in Microchip Technology by 3.4% in the second quarter. Aberdeen Group plc now owns 460,174 shares of the semiconductor company’s stock valued at $41,968,000 after buying an additional 15,238 shares during the period. Finally, Daiwa Securities Group Inc. boosted its holdings in Microchip Technology by 4.2% during the second quarter. Daiwa Securities Group Inc. now owns 195,349 shares of the semiconductor company’s stock worth $17,816,000 after buying an additional 7,884 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.

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.