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

Microchip Technology Incorporated (NASDAQ:MCHP) was the recipient of some unusual options trading on Friday. Investors bought 87,550 call options on the company. This represents an increase of 1,038% compared to the typical daily volume of 7,694 call options.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the completion of the sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. The trade was a 0.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the transaction, the chief financial officer owned 30,089 shares in the company, valued at $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 121,615 shares of company stock valued at $9,641,654 over the last three months. Insiders own 1.94% of the company’s stock.

Institutional Trading of Microchip Technology

A number of institutional investors have recently modified their holdings of MCHP. Winnow Wealth LLC bought a new position in Microchip Technology in the 3rd quarter valued at approximately $25,000. Root Financial Partners LLC acquired a new stake in Microchip Technology during the 3rd quarter worth approximately $28,000. Salomon & Ludwin LLC grew its holdings in Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 329 shares during the last quarter. Quent Capital LLC acquired a new position in Microchip Technology in the 3rd quarter valued at approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. lifted its holdings in shares of Microchip Technology by 106.8% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock worth $33,000 after purchasing an additional 267 shares during the period. 91.51% of the stock is currently owned by institutional investors.

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 Price Performance

NASDAQ:MCHP opened at $76.01 on Friday. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $81.43. The firm has a market capitalization of $41.08 billion, a price-to-earnings ratio of -262.10, a P/E/G ratio of 2.00 and a beta of 1.46. The stock’s 50 day moving average price is $70.01 and its two-hundred day moving average price is $65.59. The company has a quick ratio of 1.20, a current ratio of 2.25 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate 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 previous year, the firm posted $0.20 EPS. Microchip Technology’s revenue 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. On average, analysts anticipate that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Monday, February 23rd will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 2.4%. Microchip Technology’s dividend payout ratio is currently -404.44%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on MCHP shares. Mizuho lifted their price objective on Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a report on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Microchip Technology in a report on Thursday, January 22nd. Wells Fargo & Company raised their price objective on shares of Microchip Technology from $68.00 to $70.00 and gave the stock an “equal weight” rating in a report on Friday. Stifel Nicolaus set a $90.00 target price on shares of Microchip Technology in a research note on Friday. Finally, Rosenblatt Securities lifted their price target on Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $86.27.

About Microchip Technology

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.