Microchip Technology Target of Unusually Large Options Trading (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) was the target of some unusual options trading on Friday. Investors bought 87,550 call options on the stock. This is an increase of approximately 1,038% compared to the average volume of 7,694 call options.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Multiple broker upgrades and large price-target increases signal renewed analyst optimism — Rosenblatt raised its target to $115 (buy), Mizuho to $90 (outperform) and Needham to $84 (buy). These lifts imply substantial upside from recent levels. Benzinga TickerReport
• Positive Sentiment: Q3 fiscal 2026 results topped EPS estimates ($0.44 vs. $0.43) and showed +15.6% YoY revenue growth to ~$1.19B; management issued Q4 EPS guidance of $0.48–$0.52, above consensus at the midpoint — this supports a recovery thesis. Press Release
• Positive Sentiment: Board declared a quarterly cash dividend of $0.455/share (payable March 10; ex-div Feb 23), supporting income investors and signaling confidence in cash flow. Dividend Release
• Positive Sentiment: Strategic win: collaboration with Hyundai Motor Group to explore 10BASE‑T1S single‑pair Ethernet for automotive connectivity — supports automotive revenue momentum cited on the call. Hyundai Collaboration
• Neutral Sentiment: Earnings call transcripts and analyst notes highlight improving margins, inventory normalization and sequential revenue growth (~6.2% expected into Q4), which underpin the turnaround thesis but leave execution risk. Earnings Call Sales Signal
• Negative Sentiment: Offsetting the positives, Reuters reports Microchip forecasted quarterly profit below some Wall Street estimates and flagged memory‑supply pressures — this guidance nuance likely contributed to the sell‑off despite the beat. Reuters
• Negative Sentiment: Some analysts remain cautious — TD Cowen kept a Hold and cut its target to $70, underscoring continued visibility concerns and limiting near‑term upside for more conservative investors. TipRanks/TD Cowen
• Negative Sentiment: Market reaction: shares fell after the print despite the beat — indicating investors are focusing on near‑term margin/supply risks and mixed forward commentary rather than the upbeat parts of the release. Market Reaction

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. KeyCorp reaffirmed an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. Piper Sandler raised their price target on Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. B. Riley upped their price target on Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, January 12th. TD Cowen dropped their price target on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating on the stock in a research note on Friday, November 7th. Finally, Truist Financial raised their price target on Microchip Technology from $60.00 to $68.00 and gave the company a “hold” rating in a report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $85.32.

Insider Activity

In related news, 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 of the company’s stock, valued at approximately $1,516,184.71. This trade represents a 12.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction on 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 sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. This represents a 0.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 121,615 shares of company stock valued at $9,641,654. 1.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Microchip Technology

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

Microchip Technology Trading Down 3.4%

Shares of NASDAQ MCHP traded down $2.67 on Friday, reaching $75.37. 8,044,981 shares of the company traded hands, compared to its average volume of 9,486,911. Microchip Technology has a fifty-two week low of $34.13 and a fifty-two week high of $81.43. The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80. The company has a 50 day moving average of $69.54 and a 200 day moving average of $65.57. The stock has a market capitalization of $40.74 billion, a PE ratio of -166.81, a P/E/G ratio of 2.00 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The firm 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 company earned $0.20 EPS. The company’s revenue 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 research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

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

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.