Microchip Technology (NASDAQ:MCHP) Rating Increased to Strong-Buy at Argus

Argus upgraded shares of Microchip Technology (NASDAQ:MCHP) to a strong-buy rating in a research report sent to investors on Monday morning,Zacks.com reports.

Several other research firms have also recently weighed in on MCHP. UBS Group increased their price target on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 26th. KeyCorp restated an “overweight” rating and set a $85.00 price target on shares of Microchip Technology in a research note on Friday. Needham & Company LLC increased their price objective on shares of Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a research note on Friday. Wolfe Research set a $85.00 price objective on shares of Microchip Technology in a report on Tuesday, January 6th. Finally, JPMorgan Chase & Co. upped their target price on shares of Microchip Technology from $85.00 to $95.00 and gave the company an “overweight” rating in a report on Friday. Four research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $86.27.

Microchip Technology Stock Up 4.2%

NASDAQ MCHP traded up $3.10 during mid-day trading on Monday, reaching $77.51. The stock had a trading volume of 2,582,150 shares, compared to its average volume of 9,744,456. The company has a fifty day moving average price of $70.43 and a 200 day moving average price of $65.53. 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 has a 1 year low of $34.13 and a 1 year high of $81.43. The stock has a market cap of $41.94 billion, a PE ratio of -266.78, a price-to-earnings-growth ratio of 1.93 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating 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 company had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same period last year, the firm posted $0.20 earnings per share. 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, research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be paid a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s dividend payout ratio is presently -627.59%.

Insider Activity

In other news, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction dated Wednesday, January 28th. The stock was 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 $799,242,795.45. This represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the sale, the chief financial officer owned 30,089 shares of the company’s stock, valued at $1,516,184.71. This represents a 12.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 121,615 shares of company stock worth $9,641,654 over the last 90 days. Company insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Winnow Wealth LLC purchased a new stake in Microchip Technology in the 3rd quarter worth $25,000. Root Financial Partners LLC purchased a new stake in shares of Microchip Technology in the third quarter worth about $28,000. Salomon & Ludwin LLC lifted its position in shares of 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 buying an additional 329 shares in the last quarter. Quent Capital LLC bought a new position in Microchip Technology during the third quarter valued at approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. grew its holdings in Microchip Technology by 106.8% during 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 buying an additional 267 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

More Microchip Technology News

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

• Positive Sentiment: Company launched production-ready, full‑stack edge AI solutions (MCUs/MPUs/FPGAs + pre‑trained models and dev tools), a strategic move into growing on‑device AI markets that can expand addressable revenue and improve product stickiness. Production-Ready, Full-Stack Edge AI Solutions Turn Microchip’s MCUs and MPUs Into Catalysts for Intelligent Real-Time Decision-Making
• Positive Sentiment: Analyst support picked up (Argus upgraded to Strong Buy; several firms raised price targets, median target ~ $90), which can lift sentiment and buying interest. Argus upgrade / Zacks
• Neutral Sentiment: Management will present at the Wolfe Research Auto/Auto‑Tech & Semiconductor Conference this week — a routine investor event that offers updated color but no guaranteed material guidance changes. Presentation at Wolfe Research Conference
• Negative Sentiment: Company executed/upsized a convertible senior note financing (priced/upsized to ~$800M per reports) — provides cash but increases debt and the potential for equity dilution on conversion; hedging activity around capped calls can also add volatility. Microchip Technology Announces Upsize and Pricing of Offering of $800 Million of Convertible Senior Notes
• Negative Sentiment: Critical commentary on valuation and upside (e.g., Seeking Alpha piece calling valuation steep) may temper momentum from product and analyst news for value‑sensitive investors. Valuation Is Too Steep For My Liking
• Negative Sentiment: Recent insider sales and large institutional position reductions (reported in filings/aggregators) are a cautionary sign for conviction among some holders. Quiver / offering & insider note

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.