Investors Purchase Large Volume of Call Options on Microchip Technology (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) saw unusually large options trading on Friday. Stock investors bought 87,550 call options on the company. This represents an increase of approximately 1,038% compared to the typical daily volume of 7,694 call options.

Microchip Technology Stock Performance

Microchip Technology stock opened at $76.01 on Friday. 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 12 month low of $34.13 and a 12 month high of $81.43. The company has a fifty day moving average price of $70.01 and a two-hundred day moving average price of $65.52. The company has a market cap of $41.08 billion, a PE ratio of -262.10, a P/E/G ratio of 1.95 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.08%. The business had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm earned $0.20 EPS. The company’s revenue for the quarter was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. Research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s dividend payout ratio (DPR) is presently -404.44%.

Insider Transactions at Microchip Technology

In other news, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This represents a 0.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 4,292 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the sale, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. The trade was a 12.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 121,615 shares of company stock worth $9,641,654. 1.94% of the stock is currently owned by insiders.

Institutional Trading of Microchip Technology

A number of large investors have recently modified their holdings of MCHP. Mizuho Markets Cayman LP acquired a new position in Microchip Technology in the 2nd quarter worth about $107,584,000. Boston Partners grew its stake in shares of Microchip Technology by 38.0% in the 2nd quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock valued at $1,040,114,000 after buying an additional 4,076,112 shares in the last quarter. Assenagon Asset Management S.A. increased its holdings in Microchip Technology by 498.0% in the third quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock worth $130,675,000 after buying an additional 1,694,533 shares during the last quarter. Voya Investment Management LLC raised its position in Microchip Technology by 37.2% during the third quarter. Voya Investment Management LLC now owns 3,361,581 shares of the semiconductor company’s stock valued at $215,881,000 after acquiring an additional 911,731 shares in the last quarter. Finally, U.S. Capital Wealth Advisors LLC acquired a new stake in Microchip Technology in the third quarter valued at approximately $3,698,000. Institutional investors and hedge funds own 91.51% of the company’s stock.

Analyst Upgrades and Downgrades

MCHP has been the subject of a number of recent analyst reports. Morgan Stanley raised their price objective on Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 6th. Susquehanna increased their target price on Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a research note on Thursday, January 22nd. Bank of America raised shares of Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 price target for the company in a research report on Wednesday, January 28th. Wolfe Research set a $85.00 price target on shares of Microchip Technology in a report on Tuesday, January 6th. Finally, Stifel Nicolaus set a $90.00 price objective on shares of Microchip Technology in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Microchip Technology currently has an average rating of “Moderate Buy” and an average target price of $86.27.

Key Headlines Impacting Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Multiple broker upgrades and higher price targets — notable raises include JPMorgan to $95 (overweight), Mizuho to $90 (outperform), Rosenblatt to $115 (buy), and Needham to $84 — these lifts signal fresh upside expectations. Benzinga
• Positive Sentiment: Q3 results: MCHP beat EPS (reported $0.44 vs. $0.43 consensus), revenue up ~15.6% YoY, and management raised Q4 EPS guidance to $0.480–$0.520 (above consensus) — a constructive operational recovery and improving margins. Earnings Report
• Positive Sentiment: Strategic and cash returns: company announced a $0.455 quarterly dividend (yield ~2.4%) and a collaboration with Hyundai on single‑pair Ethernet for automotive connectivity — supports long‑term TAM in automotive/industrial markets. Dividend Hyundai Collaboration
• Positive Sentiment: Unusual options activity: extremely large call buying (≈87,550 calls, ~1,038% above average) — signals speculative/positioning interest that can amplify upside moves if catalysts continue.
• Neutral Sentiment: Citigroup trimmed its target slightly (from $92 to $91) but kept a Buy rating — a modest adjustment that leaves upside intact but is not a strong directional signal. Benzinga
• Negative Sentiment: Macro/supply headwind: Reuters reports Microchip forecasted Q4 profit below some estimates and flagged memory‑supply issues — this created investor caution despite the beat. Reuters
• Negative Sentiment: Some analysts remain conservative or cut targets — Wells Fargo (raised PT to $70 but rated equal weight), Truist to $68 (hold), and TD Cowen lowered target to $70 — these calls imply limited near‑term upside and help explain selling pressure. TickerReport/Wells Fargo Benzinga TipRanks/TD Cowen
• Negative Sentiment: Market reaction: several headlines note shares fell after the quarter despite the beat — suggests investors focused on supply commentary and cautious forward earnings phrasing. Zacks

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.