Traders Purchase Large Volume of Put Options on Microchip Technology (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) was the target of some unusual options trading on Friday. Stock investors acquired 19,025 put options on the company. This is an increase of 48% compared to the typical volume of 12,893 put options.

Microchip Technology Stock Down 2.0 %

NASDAQ MCHP traded down $1.08 during mid-day trading on Tuesday, reaching $52.81. 4,806,249 shares of the company's stock traded hands, compared to its average volume of 7,028,902. The company has a current ratio of 2.25, a quick ratio of 1.23 and a debt-to-equity ratio of 1.12. Microchip Technology has a 1-year low of $49.92 and a 1-year high of $100.57. The company has a fifty day simple moving average of $56.13 and a 200-day simple moving average of $64.49. The company has a market cap of $28.40 billion, a price-to-earnings ratio of 94.35 and a beta of 1.52.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its quarterly earnings data on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. As a group, equities research analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Investors of record on Monday, February 24th were issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 3.45%. The ex-dividend date was Monday, February 24th. Microchip Technology's dividend payout ratio (DPR) is 325.00%.

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Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on MCHP. Raymond James reiterated a "strong-buy" rating and issued a $60.00 price target (down from $95.00) on shares of Microchip Technology in a report on Friday, February 7th. Piper Sandler reiterated an "overweight" rating and issued a $65.00 target price (down from $85.00) on shares of Microchip Technology in a report on Friday, February 7th. Bank of America cut shares of Microchip Technology from a "neutral" rating to an "underperform" rating and lowered their price target for the company from $80.00 to $65.00 in a report on Monday, December 16th. KeyCorp reduced their price objective on shares of Microchip Technology from $70.00 to $60.00 and set an "overweight" rating for the company in a research note on Friday, February 7th. Finally, Mizuho raised their target price on shares of Microchip Technology from $58.00 to $68.00 and gave the company an "outperform" rating in a research note on Tuesday, March 4th. 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 issued a strong buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $74.37.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Eric Bjornholt sold 3,724 shares of the company's stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $60.88, for a total value of $226,717.12. Following the completion of the sale, the chief financial officer now owns 33,272 shares of the company's stock, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. United Bank lifted its holdings in shares of Microchip Technology by 21.0% in the third quarter. United Bank now owns 9,871 shares of the semiconductor company's stock valued at $793,000 after buying an additional 1,712 shares during the period. OneDigital Investment Advisors LLC lifted its holdings in Microchip Technology by 6.7% in the 3rd quarter. OneDigital Investment Advisors LLC now owns 4,458 shares of the semiconductor company's stock valued at $358,000 after acquiring an additional 280 shares during the last quarter. Quest Partners LLC lifted its holdings in Microchip Technology by 463,300.0% in the 3rd quarter. Quest Partners LLC now owns 4,634 shares of the semiconductor company's stock valued at $372,000 after acquiring an additional 4,633 shares during the last quarter. B. Metzler seel. Sohn & Co. Holding AG bought a new position in shares of Microchip Technology during the 3rd quarter valued at about $2,203,000. Finally, West Family Investments Inc. acquired a new position in shares of Microchip Technology in the 3rd quarter worth approximately $203,000. 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.