What Will Happen to Microchip Technology Inc. Next? The Stock Just Had Huge Bullish Options Activity

 What Will Happen to Microchip Technology Inc. Next? The Stock Just Had Huge Bullish Options Activity

In today’s session Microchip Technology Inc. (MCHP) registered an unusually high (714) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious MCHP increase. With 714 contracts traded and 12284 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: MCHP161021C00062500 closed last at: $0.15 or 70% down. About 120,691 shares traded hands. Microchip Technology Inc. (NASDAQ:MCHP) has risen 25.27% since March 10, 2016 and is uptrending. It has outperformed by 17.75% the S&P500.

Analysts await Microchip Technology Inc. (NASDAQ:MCHP) to report earnings on November, 2. They expect $0.74 EPS, up 25.42% or $0.15 from last year’s $0.59 per share. MCHP’s profit will be $157.45 million for 19.47 P/E if the $0.74 EPS becomes a reality. After $0.67 actual EPS reported by Microchip Technology Inc. for the previous quarter, Wall Street now forecasts 10.45% EPS growth.

Microchip Technology Inc. (NASDAQ:MCHP) Ratings Coverage

Out of 12 analysts covering Microchip Technology (NASDAQ:MCHP), 9 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 75% are positive. Microchip Technology has been the topic of 19 analyst reports since August 5, 2015 according to StockzIntelligence Inc. The rating was maintained by Jefferies on Saturday, August 8 with “Buy”. B. Riley & Co upgraded Microchip Technology Inc. (NASDAQ:MCHP) on Thursday, November 5 to “Buy” rating. The rating was upgraded by Morgan Stanley on Tuesday, January 19 to “Overweight”. On Tuesday, August 9 the stock rating was maintained by Citigroup with “Buy”. The firm has “Buy” rating by Needham given on Monday, January 18. The firm has “Overweight” rating given on Tuesday, August 9 by JP Morgan. The stock has “Neutral” rating given by Mizuho on Friday, September 30. The stock has “Buy” rating given by Needham on Friday, January 15. The stock has “Buy” rating given by Jefferies on Tuesday, August 9. The rating was maintained by Jefferies with “Buy” on Wednesday, August 5.

According to Zacks Investment Research, “Microchip Technology, Inc. develops and manufactures specialized semiconductor products used by its customers for a wide variety of embedded control applications. Its product portfolio comprises microcontrollers; application-specific standard products; and related mixed-signal and memory products. The company markets its products to the consumer, automotive, office automation, communications and industrial markets.”

Insitutional Activity: The institutional sentiment increased to 1.57 in 2016 Q2. Its up 0.41, from 1.16 in 2016Q1. The ratio increased, as 30 funds sold all Microchip Technology Inc. shares owned while 163 reduced positions. 67 funds bought stakes while 236 increased positions. They now own 214.90 million shares or 2.05% more from 210.57 million shares in 2016Q1.
Vsr Finance Service has 0.05% invested in the company for 5,673 shares. Cape Ann Comml Bank last reported 4,075 shares in the company. Moreover, Winton Cap Grp Limited has 0.21% invested in Microchip Technology Inc. (NASDAQ:MCHP) for 254,682 shares. Morgan Dempsey Capital Mgmt Limited Co has 0.6% invested in the company for 35,054 shares. Mitsubishi Ufj Tru Bk Corporation accumulated 997,390 shares or 0.11% of the stock. Gideon last reported 12,494 shares in the company. Beacon Trust has 7,720 shares for 0.06% of their US portfolio. Td Asset Mngmt holds 0.07% or 711,477 shares in its portfolio. First Allied Advisory Services last reported 0.02% of its portfolio in the stock. Deere & Com, a Illinois-based fund reported 24,838 shares. Moreover, Orleans Management Corporation La has 1.24% invested in Microchip Technology Inc. (NASDAQ:MCHP) for 34,947 shares. Comml Bank Of The Ozarks, a Arkansas-based fund reported 4,555 shares. Tiaa Cref Trust Fsb Mo last reported 10,016 shares in the company. Regions Fin, a Alabama-based fund reported 329,958 shares. 1832 Asset L P holds 631 shares or 0% of its portfolio.

Insider Transactions: Since May 20, 2016, the stock had 0 buys, and 17 insider sales for $20.17 million net activity. $1.76 million worth of shares were sold by SANGHI STEVE on Thursday, August 18. LITTLE MITCHELL R had sold 3,039 shares worth $185,227. Shares for $130,494 were sold by SIMONCIC RICHARD J. CHAPMAN MATTHEW W also sold $479,200 worth of Microchip Technology Inc. (NASDAQ:MCHP) shares. MEYERCORD WADE F also sold $90,751 worth of Microchip Technology Inc. (NASDAQ:MCHP) shares. DREHOBL STEPHEN V also sold $271,471 worth of Microchip Technology Inc. (NASDAQ:MCHP) on Monday, August 22. The insider MOORTHY GANESH sold $516,905.

Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its clients for a range of embedded control applications. The company has a market cap of $12.26 billion. The Firm operates through two divisions: semiconductor products and technology licensing. It has a 151.82 P/E ratio. In the semiconductor products segment, the Company designs, develops, makes and markets microcontrollers, development tools and analog, interface, mixed signal and timing products.

MCHP Company Profile

Microchip Technology Incorporated, incorporated on February 14, 1989, is engaged in developing, manufacturing and selling specialized semiconductor products used by its clients for a range of embedded control applications. The Firm operates through two divisions: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, makes and markets microcontrollers, development tools and analog, interface, mixed signal and timing products. The Company’s functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance.

More news for Microchip Technology Inc. (NASDAQ:MCHP) were recently published by: Forbes.com, which released: “Citrix Systems Becomes #10 Most Shorted Nasdaq 100 Component, Replacing …” on October 13, 2016. Prnewswire.com‘s article titled: “Microchip Technology Updates Guidance For Non-GAAP Net Sales And EPS For …” and published on September 06, 2016 is yet another important article.

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