Stock Traders Purchase High Volume of Microchip Technology Put Options (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of unusually large options trading activity on Friday. Investors purchased 19,025 put options on the stock. This represents an increase of approximately 48% compared to the typical daily volume of 12,893 put options.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on MCHP. KeyCorp lowered their target price on Microchip Technology from $70.00 to $60.00 and set an “overweight” rating for the company in a research note on Friday, February 7th. Rosenblatt Securities reissued a “buy” rating and issued a $70.00 price objective on shares of Microchip Technology in a report on Tuesday, March 4th. Bank of America downgraded Microchip Technology from a “neutral” rating to an “underperform” rating and cut their price objective for the company from $80.00 to $65.00 in a report on Monday, December 16th. TD Cowen raised their price target on Microchip Technology from $50.00 to $60.00 and gave the company a “hold” rating in a report on Tuesday, March 4th. Finally, Morgan Stanley dropped their target price on Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating for the company in a report on Tuesday, February 4th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.37.

Microchip Technology Trading Up 1.9 %

Shares of NASDAQ:MCHP traded up $0.99 during midday trading on Friday, hitting $51.99. 16,126,575 shares of the stock were exchanged, compared to its average volume of 9,870,780. The stock has a market capitalization of $27.96 billion, a price-to-earnings ratio of 92.86 and a beta of 1.52. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25. The business’s 50-day moving average price is $56.24 and its 200 day moving average price is $65.03. Microchip Technology has a 12 month low of $49.92 and a 12 month high of $100.57.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings data on Thursday, February 6th. The semiconductor company reported $0.13 EPS 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%. Analysts predict that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Monday, February 24th were paid a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 3.50%. The ex-dividend date of this dividend was Monday, February 24th. Microchip Technology’s dividend payout ratio (DPR) is presently 325.00%.

Insider Buying and Selling at Microchip Technology

In related news, CFO James Eric Bjornholt sold 3,724 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total transaction of $226,717.12. Following the transaction, the chief financial officer now owns 33,272 shares in the company, valued at $2,025,599.36. This represents a 10.07 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently added to or reduced their stakes in the business. Mainstream Capital Management LLC bought a new stake in shares of Microchip Technology during the fourth quarter valued at approximately $26,000. Rakuten Securities Inc. grew its stake in Microchip Technology by 309.5% in the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 359 shares during the period. Prospera Private Wealth LLC bought a new position in Microchip Technology in the 3rd quarter valued at $29,000. OFI Invest Asset Management purchased a new position in shares of Microchip Technology during the 4th quarter valued at $29,000. Finally, Financial Life Planners purchased a new position in shares of Microchip Technology during the 4th quarter valued at $32,000. 91.51% of the stock is owned by institutional investors and hedge funds.

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.