Citigroup Cuts Microchip Technology (NASDAQ:MCHP) Price Target to $91.00

Microchip Technology (NASDAQ:MCHP) had its price target cut by research analysts at Citigroup from $92.00 to $91.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the semiconductor company’s stock. Citigroup’s price target indicates a potential upside of 20.13% from the company’s previous close.

Several other equities analysts also recently commented on the company. UBS Group raised their target price on Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday, January 26th. Truist Financial upped their price target on Microchip Technology from $60.00 to $68.00 and gave the company a “hold” rating in a research note on Friday. Weiss Ratings restated a “sell (d+)” rating on shares of Microchip Technology in a research report on Thursday, January 22nd. Rosenblatt Securities raised their target price on shares of Microchip Technology from $80.00 to $115.00 and gave the stock a “buy” rating in a report on Friday. Finally, Jefferies Financial Group reissued a “hold” rating on shares of Microchip Technology in a report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $85.82.

Microchip Technology Price Performance

Shares of NASDAQ MCHP traded down $2.29 during midday trading on Friday, reaching $75.75. The company’s stock had a trading volume of 11,636,461 shares, compared to its average volume of 9,634,809. The company has a market cap of $40.94 billion, a price-to-earnings ratio of -168.55, a price-to-earnings-growth ratio of 2.00 and a beta of 1.46. 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 price of $69.54 and a 200 day moving average price of $65.57. Microchip Technology has a one year low of $34.13 and a one year high of $81.43.

Microchip Technology (NASDAQ:MCHP) last released its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the prior year, the company earned $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 research analysts expect that Microchip Technology will post 1.03 EPS for the current year.

Insider Activity

In other Microchip Technology news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the transaction, the chief executive officer directly owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. This represents a 0.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 completion of the sale, the chief financial officer owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 121,615 shares of company stock valued at $9,641,654. Corporate insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Microchip Technology

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

Key Microchip Technology News

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

• Positive Sentiment: Q3 results beat consensus and showed recovery: revenue was $1.19B (+15.6% YoY) and adjusted EPS $0.44 (beat $0.43). Management set Q4 EPS guidance of $0.480–0.520 and signaled sequential sales growth, which supports a momentum recovery thesis. Microchip Q3 Results Press Release
• Positive Sentiment: Management highlighted automotive and connectivity strength (industrial Ethernet) as drivers of the recovery and flagged ~6.2% sequential sales growth expectations for Q4 — a positive signal for exposure to auto/industrial end markets. Q4 Sequential Growth / Automotive Momentum
• Positive Sentiment: Strategic partnership: Microchip and Hyundai are collaborating to explore Single‑Pair Ethernet (10BASE‑T1S) for vehicles — reinforces auto content opportunities. Hyundai Collaboration
• Positive Sentiment: Capital returns: board declared a $0.455 quarterly dividend (ex‑div Feb 23), supporting income investors and signaling confidence in cash generation. Dividend Announcement
• Positive Sentiment: Bullish analyst activity and positioning: several firms raised price targets (examples include Mizuho, Rosenblatt, Needham) and there was heavy call‑option buying (≈87,550 calls), indicating strong speculative/bullish interest. Analyst Price Target Moves (Benzinga)
• Neutral Sentiment: MarketBeat and other commentary frame Q3 as a technical/earnings inflection (return to growth and improving margins) — useful context for longer‑term thesis but not an immediate price driver by itself. MarketBeat Analysis
• Negative Sentiment: Supply‑side risk: Reuters flagged that Microchip forecasted quarterly profit below some estimates and cited memory‑supply shortages as a headwind — a near‑term risk that can pressure sentiment and margins. Reuters: Profit Forecast / Memory Shortages
• Negative Sentiment: Market reaction and analyst caution: despite the beat, shares pulled back and some analysts remain cautious or trimmed targets (TD Cowen lowered to $70; Truist holds a $68 target), which can limit near‑term upside. Zacks: Shares Drop Despite Beat TD Cowen / TipRanks

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.