Microchip Technology (NASDAQ:MCHP) Shares Gap Up on Analyst Upgrade

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) gapped up prior to trading on Tuesday after Needham & Company LLC raised their price target on the stock from $75.00 to $77.00. The stock had previously closed at $67.06, but opened at $70.56. Needham & Company LLC currently has a buy rating on the stock. Microchip Technology shares last traded at $72.3330, with a volume of 2,652,845 shares changing hands.

Several other research analysts have also weighed in on the company. Susquehanna lowered their price objective on Microchip Technology from $85.00 to $75.00 and set a “positive” rating for the company in a research report on Friday, November 7th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Microchip Technology in a research note on Wednesday, October 8th. Bank of America raised their price target on Microchip Technology from $67.00 to $72.00 and gave the company a “neutral” rating in a research note on Friday, December 5th. Rosenblatt Securities restated a “buy” rating and issued a $80.00 price objective on shares of Microchip Technology in a research note on Wednesday, December 3rd. Finally, KeyCorp reiterated an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Microchip Technology has a consensus rating of “Moderate Buy” and a consensus target price of $76.80.

Insider Activity

In related news, 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 completion of the sale, the chief financial officer owned 30,089 shares in the company, valued at $1,516,184.71. This trade represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.94% of the stock is currently owned by company insiders.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Company business update: Microchip now expects Q3 net sales of about $1,185 million, well above its prior guidance range, citing strong bookings and recovery across end markets. This is the primary catalyst for the rally. GlobeNewswire — Business Update
• Positive Sentiment: Media and wire coverage highlight the outlook raise and strong bookings, with reports noting the stock jumped in after-hours trading after the update. That momentum carried into today as investors reprice growth expectations. Reuters — Q3 Revenue Forecast
• Positive Sentiment: Broker actions: Rosenblatt reaffirmed a “buy” and set a $80 price target; Needham raised its target from $75 to $77 and keeps a “buy” rating — analyst support and higher targets add upside expectations. Benzinga — Analyst Notes
• Positive Sentiment: Additional coverage: Benzinga and Yahoo headlines summarize the stronger outlook and bookings, reinforcing the narrative that demand/backlog are improving into the March quarter. Benzinga — Raises Outlook Again
• Neutral Sentiment: Valuation and longer-term context: recent analyst commentary and valuation pieces note mixed signals—earnings have been pressured year-over-year even as bookings improve—so investors should weigh near-term revenue beats against longer-term profitability trends. Yahoo Finance — Valuation Assessment

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MCHP. Board of the Pension Protection Fund purchased a new position in Microchip Technology in the 4th quarter valued at about $38,000. GoalVest Advisory LLC grew its stake in Microchip Technology by 174.0% in the 4th quarter. GoalVest Advisory LLC now owns 548 shares of the semiconductor company’s stock worth $35,000 after acquiring an additional 348 shares during the period. Allworth Financial LP raised its holdings in Microchip Technology by 3.0% in the 3rd quarter. Allworth Financial LP now owns 8,058 shares of the semiconductor company’s stock valued at $517,000 after acquiring an additional 237 shares during the last quarter. IFP Advisors Inc grew its position in shares of Microchip Technology by 294.4% in the third quarter. IFP Advisors Inc now owns 1,128 shares of the semiconductor company’s stock valued at $72,000 after purchasing an additional 842 shares during the period. Finally, Groupama Asset Managment purchased a new position in Microchip Technology during the third quarter worth about $338,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Stock Up 8.4%

The company has a market cap of $39.29 billion, a PE ratio of -161.54, a PEG ratio of 2.03 and a beta of 1.46. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25. The firm has a fifty day simple moving average of $60.44 and a 200 day simple moving average of $64.96.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. The business had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.13 billion. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The company’s quarterly revenue was down 2.0% on a year-over-year basis. During the same period last year, the company earned $0.46 earnings per share. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Equities research analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Monday, November 24th. Microchip Technology’s dividend payout ratio (DPR) is -404.44%.

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.