Microchip Technology Sees Unusually Large Options Volume (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of unusually large options trading activity on Wednesday. Stock investors bought 141,002 call options on the company. This is an increase of 1,252% compared to the typical volume of 10,426 call options.

Microchip Technology Stock Up 0.2%

Shares of NASDAQ:MCHP opened at $64.71 on Thursday. The firm has a market capitalization of $35.02 billion, a PE ratio of -223.14, a price-to-earnings-growth ratio of 1.63 and a beta of 1.45. The business has a 50 day simple moving average of $73.75 and a two-hundred day simple moving average of $66.58. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $83.35. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the business posted $0.20 earnings per share. The company’s revenue for the quarter was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities analysts predict that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were paid a $0.455 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.82 dividend on an annualized basis and a yield of 2.8%. Microchip Technology’s dividend payout ratio (DPR) is presently -627.59%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on MCHP. Morgan Stanley upped their price objective on Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 6th. Barclays initiated coverage on Microchip Technology in a report on Thursday, February 12th. They issued an “equal weight” rating and a $80.00 target price for the company. Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 24th. Rosenblatt Securities increased their price target on Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a report on Friday, February 6th. Finally, Piper Sandler lifted their price objective on shares of Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a research note on Thursday, January 15th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $86.00.

Insider Buying and Selling at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the transaction, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.94% of the stock is currently owned by company insiders.

Institutional Trading of Microchip Technology

A number of large investors have recently made changes to their positions in MCHP. Norges Bank bought a new stake in Microchip Technology during the 4th quarter valued at about $664,564,000. Dodge & Cox grew its stake in Microchip Technology by 958.4% in the 2nd quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock worth $446,132,000 after acquiring an additional 5,740,827 shares in the last quarter. Barclays PLC increased its position in shares of Microchip Technology by 66.5% during the fourth quarter. Barclays PLC now owns 13,996,883 shares of the semiconductor company’s stock worth $891,881,000 after acquiring an additional 5,590,210 shares during the period. Boston Partners increased its position in shares of Microchip Technology by 38.2% during the second quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock worth $1,041,868,000 after acquiring an additional 4,101,034 shares during the period. Finally, State Street Corp raised its stake in shares of Microchip Technology by 8.5% during the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after acquiring an additional 2,489,258 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.