Microchip Technology (NASDAQ:MCHP) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a buy rating in a report published on Saturday.

Several other equities research analysts have also issued reports on the company. Wolfe Research set a $85.00 price target on Microchip Technology in a research report on Tuesday, January 6th. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price on the stock in a report on Thursday, January 22nd. Truist Financial raised their price target on shares of Microchip Technology from $60.00 to $68.00 and gave the stock a “hold” rating in a research report on Friday. KeyCorp reaffirmed an “overweight” rating and issued a $85.00 price target on shares of Microchip Technology in a report on Friday. Finally, Mizuho increased their price objective on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research note on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Microchip Technology presently has an average rating of “Moderate Buy” and an average price target of $86.27.

Microchip Technology Price Performance

MCHP opened at $76.01 on Friday. The company has a market capitalization of $41.08 billion, a P/E ratio of -262.10, a PEG ratio of 1.95 and a beta of 1.46. The company has a 50-day moving average of $70.01 and a 200-day moving average of $65.52. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $81.43.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.08%. The business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter last year, the company posted $0.20 earnings per share. The company’s quarterly 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. Equities analysts expect that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

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

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction 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 of the company’s stock, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the sale, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at $1,516,184.71. The trade was a 12.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 121,615 shares of company stock worth $9,641,654 in the last ninety days. 1.94% of the stock is owned by company insiders.

Institutional Trading of Microchip Technology

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Millstone Evans Group LLC raised its holdings in shares of Microchip Technology by 23.7% in the 4th quarter. Millstone Evans Group LLC now owns 742 shares of the semiconductor company’s stock valued at $47,000 after purchasing an additional 142 shares in the last quarter. Verdence Capital Advisors LLC increased its holdings in Microchip Technology by 2.2% during the fourth quarter. Verdence Capital Advisors LLC now owns 7,120 shares of the semiconductor company’s stock valued at $454,000 after buying an additional 150 shares during the period. Sagespring Wealth Partners LLC raised its stake in Microchip Technology by 2.7% in the second quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company’s stock worth $407,000 after buying an additional 154 shares in the last quarter. Soltis Investment Advisors LLC raised its stake in Microchip Technology by 0.7% in the fourth quarter. Soltis Investment Advisors LLC now owns 22,469 shares of the semiconductor company’s stock worth $1,432,000 after buying an additional 155 shares in the last quarter. Finally, Florida Trust Wealth Management Co lifted its holdings in Microchip Technology by 3.3% during the third quarter. Florida Trust Wealth Management Co now owns 4,890 shares of the semiconductor company’s stock worth $314,000 after buying an additional 157 shares during the period. 91.51% of the stock is currently owned by institutional investors.

More Microchip Technology News

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

• Positive Sentiment: Multiple broker upgrades and higher price targets — notable raises include JPMorgan to $95 (overweight), Mizuho to $90 (outperform), Rosenblatt to $115 (buy), and Needham to $84 — these lifts signal fresh upside expectations. Benzinga
• Positive Sentiment: Q3 results: MCHP beat EPS (reported $0.44 vs. $0.43 consensus), revenue up ~15.6% YoY, and management raised Q4 EPS guidance to $0.480–$0.520 (above consensus) — a constructive operational recovery and improving margins. Earnings Report
• Positive Sentiment: Strategic and cash returns: company announced a $0.455 quarterly dividend (yield ~2.4%) and a collaboration with Hyundai on single‑pair Ethernet for automotive connectivity — supports long‑term TAM in automotive/industrial markets. Dividend Hyundai Collaboration
• Positive Sentiment: Unusual options activity: extremely large call buying (≈87,550 calls, ~1,038% above average) — signals speculative/positioning interest that can amplify upside moves if catalysts continue.
• Neutral Sentiment: Citigroup trimmed its target slightly (from $92 to $91) but kept a Buy rating — a modest adjustment that leaves upside intact but is not a strong directional signal. Benzinga
• Negative Sentiment: Macro/supply headwind: Reuters reports Microchip forecasted Q4 profit below some estimates and flagged memory‑supply issues — this created investor caution despite the beat. Reuters
• Negative Sentiment: Some analysts remain conservative or cut targets — Wells Fargo (raised PT to $70 but rated equal weight), Truist to $68 (hold), and TD Cowen lowered target to $70 — these calls imply limited near‑term upside and help explain selling pressure. TickerReport/Wells Fargo Benzinga TipRanks/TD Cowen
• Negative Sentiment: Market reaction: several headlines note shares fell after the quarter despite the beat — suggests investors focused on supply commentary and cautious forward earnings phrasing. Zacks

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.