Microchip Technology Target of Unusually Large Options Trading (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of unusually large options trading activity on Friday. Traders bought 28,913 call options on the stock. This is an increase of 220% compared to the average volume of 9,023 call options.

Wall Street Analyst Weigh In

A number of brokerages recently commented on MCHP. Susquehanna decreased their target price on shares of Microchip Technology from $85.00 to $75.00 and set a “positive” rating on the stock in a research report on Friday, November 7th. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 18th. Bank of America lifted their price objective on Microchip Technology from $67.00 to $72.00 and gave the stock a “neutral” rating in a report on Friday, December 5th. Rosenblatt Securities restated a “buy” rating and set a $80.00 target price on shares of Microchip Technology in a report on Wednesday, December 3rd. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Microchip Technology in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Microchip Technology has an average rating of “Moderate Buy” and a consensus price target of $74.95.

Microchip Technology Stock Down 2.8%

Shares of NASDAQ:MCHP opened at $67.18 on Friday. The stock’s 50-day moving average is $60.42 and its 200 day moving average is $64.90. The company has a market cap of $36.31 billion, a PE ratio of -149.29, a P/E/G ratio of 2.18 and a beta of 1.47. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.25 and a quick ratio of 1.20. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $77.20.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The business had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter last year, the business posted $0.46 EPS. The business’s revenue was down 2.0% on a year-over-year basis. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Sell-side analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 9th. Investors of record on Monday, November 24th were issued a $0.455 dividend. The ex-dividend date was Monday, November 24th. This represents a $1.82 annualized dividend and a yield of 2.7%. Microchip Technology’s payout ratio is -404.44%.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 4,292 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the completion of the sale, the chief financial officer directly owned 30,089 shares in the company, valued at approximately $1,516,184.71. The trade was a 12.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MCHP. Sagespring Wealth Partners LLC boosted its stake in shares of Microchip Technology by 2.7% during the 2nd quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company’s stock valued at $407,000 after purchasing an additional 154 shares in the last quarter. Florida Trust Wealth Management Co lifted its holdings in Microchip Technology by 3.3% in the third quarter. Florida Trust Wealth Management Co now owns 4,890 shares of the semiconductor company’s stock worth $314,000 after buying an additional 157 shares during the period. Clean Yield Group lifted its holdings in Microchip Technology by 9.4% in the third quarter. Clean Yield Group now owns 1,890 shares of the semiconductor company’s stock worth $121,000 after buying an additional 163 shares during the period. Mechanics Financial Corp boosted its position in Microchip Technology by 3.4% during the 2nd quarter. Mechanics Financial Corp now owns 5,014 shares of the semiconductor company’s stock valued at $353,000 after acquiring an additional 167 shares in the last quarter. Finally, Slagle Financial LLC grew its holdings in shares of Microchip Technology by 0.3% during the 3rd quarter. Slagle Financial LLC now owns 64,485 shares of the semiconductor company’s stock worth $4,141,000 after acquiring an additional 168 shares during the period. 91.51% of the stock is currently owned by institutional investors.

Microchip Technology Company Profile

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.