Microchip Technology (NASDAQ:MCHP) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Microchip Technology (NASDAQ:MCHP) from a buy rating to a hold rating in a research note released on Saturday,Wall Street Zen reports.

MCHP has been the topic of several other reports. Rosenblatt Securities cut their price objective on shares of Microchip Technology from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday. UBS Group reiterated a “buy” rating and set a $120.00 target price (down from $130.00) on shares of Microchip Technology in a report on Friday, August 7th. TD Cowen dropped their price target on Microchip Technology from $90.00 to $75.00 and set a “hold” rating on the stock in a research note on Monday, October 19th. Citigroup cut their price target on Microchip Technology from $95.00 to $75.00 and set a “buy” rating on the stock in a report on Friday. Finally, Wells Fargo & Company cut their price target on Microchip Technology from $80.00 to $70.00 and set an “equal weight” rating on the stock in a report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $90.18.

Microchip Technology Trading Up 5.4%

NASDAQ:MCHP opened at $61.49 on Friday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. The business’s 50-day simple moving average is $74.62 and its 200-day simple moving average is $79.34. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The stock has a market capitalization of $33.39 billion, a PE ratio of 45.94, a price-to-earnings-growth ratio of 0.52 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, topping the consensus estimate of $0.94 by $0.03. The firm had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business’s quarterly revenue was up 42.2% on a year-over-year basis. During the same period last year, the company posted $0.35 EPS. Sell-side analysts expect that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 8th. Investors of record on Monday, November 23rd will be issued a dividend of $0.4550 per share. The ex-dividend date is Monday, November 23rd. This represents a $1.82 annualized dividend and a yield of 3.0%. Microchip Technology’s dividend payout ratio is presently 137.88%.

Insider Buying and Selling

In related news, CFO James Bjornholt sold 4,112 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer owned 28,573 shares of the company’s stock, valued at approximately $2,152,118.36. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of large investors have recently modified their holdings of MCHP. Cetera Trust Company N.A increased its position in shares of Microchip Technology by 0.8% in the third quarter. Cetera Trust Company N.A now owns 22,565 shares of the semiconductor company’s stock valued at $1,755,000 after acquiring an additional 171 shares during the last quarter. Hantz Financial Services Inc. raised its holdings in Microchip Technology by 18.9% during the third quarter. Hantz Financial Services Inc. now owns 10,739 shares of the semiconductor company’s stock worth $835,000 after acquiring an additional 1,704 shares in the last quarter. Ground Swell Capital LLC acquired a new position in Microchip Technology during the third quarter valued at approximately $244,000. Phoenix Financial Ltd. boosted its position in Microchip Technology by 7.6% during the third quarter. Phoenix Financial Ltd. now owns 11,043 shares of the semiconductor company’s stock valued at $860,000 after purchasing an additional 779 shares during the last quarter. Finally, Danske Bank A S boosted its position in Microchip Technology by 1.0% during the third quarter. Danske Bank A S now owns 276,740 shares of the semiconductor company’s stock valued at $21,522,000 after purchasing an additional 2,655 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: JPMorgan cut its target to $100 from $120 but kept an overweight rating, indicating the analyst still sees meaningful upside from the referenced $61.49 price. JPMorgan analyst update
• Positive Sentiment: Q3 coverage points to data-center design wins, which could support demand, although the article also flags risks. MCHP Q3 CY2026 deep dive
• Neutral Sentiment: Morgan Stanley lowered its target to $72 from $103 and maintained an equal-weight rating. Barclays also kept an equal-weight rating while cutting its target to $90 from $105. Both targets remain above the referenced share price, but the reductions signal more cautious expectations. Morgan Stanley analyst update Barclays analyst update
• Negative Sentiment: The broad run of target reductions—including reports of cuts from Citigroup, Truist Financial and Jefferies—suggests analysts are reassessing MCHP’s outlook. Morgan Stanley’s reduction was especially steep, from $103 to $72. Citigroup target cut Truist target cut Jefferies target cut
• Negative Sentiment: Q3 coverage cites a cautious outlook and supply constraints, factors that could limit near-term growth despite data-center wins. A separate report noted MCHP fell following an analyst downgrade, underscoring sensitivity to negative revisions. Q3 outlook and supply constraints Report on stock reaction to downgrade

Microchip Technology Company Profile