Bank of America Upgrades Microchip Technology (NASDAQ:MCHP) to “Buy”

Microchip Technology (NASDAQ:MCHP) was upgraded by analysts at Bank of America from a “neutral” rating to a “buy” rating in a research note issued to investors on Wednesday, Marketbeat.com reports. The brokerage currently has a $95.00 target price on the semiconductor company’s stock. Bank of America‘s price target points to a potential upside of 19.71% from the stock’s previous close.

A number of other equities research analysts have also recently commented on MCHP. Morgan Stanley lifted their target price on Microchip Technology from $68.00 to $69.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 6th. BNP Paribas Exane upgraded shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 price objective for the company in a report on Thursday, January 22nd. UBS Group lifted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday. KeyCorp reissued an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. Finally, TD Cowen decreased their price target on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research note on Friday, November 7th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $82.05.

Microchip Technology Trading Down 1.1%

Shares of MCHP stock opened at $79.36 on Wednesday. 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 company has a market capitalization of $42.89 billion, a price-to-earnings ratio of -176.36, a PEG ratio of 2.38 and a beta of 1.46. Microchip Technology has a 52-week low of $34.13 and a 52-week high of $81.43. The company has a 50-day simple moving average of $66.98 and a two-hundred day simple moving average of $65.46.

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

Insider Buying and Selling

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 value of $7,959,467.70. Following the completion of the transaction, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction on 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 transaction, the chief financial officer owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This trade represents a 12.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 121,615 shares of company stock worth $9,641,654 over the last 90 days. 1.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MCHP. Verdence Capital Advisors LLC lifted its holdings in shares of Microchip Technology by 2.2% in the fourth quarter. Verdence Capital Advisors LLC now owns 7,120 shares of the semiconductor company’s stock worth $454,000 after buying an additional 150 shares in the last quarter. Sagespring Wealth Partners LLC grew its stake in Microchip Technology by 2.7% during the second quarter. Sagespring Wealth Partners LLC now owns 5,787 shares of the semiconductor company’s stock valued at $407,000 after acquiring an additional 154 shares in the last quarter. Florida Trust Wealth Management Co increased its holdings in Microchip Technology by 3.3% during the 3rd quarter. Florida Trust Wealth Management Co now owns 4,890 shares of the semiconductor company’s stock worth $314,000 after acquiring an additional 157 shares during the period. Bouchey Financial Group Ltd lifted its stake in Microchip Technology by 4.4% in the 4th quarter. Bouchey Financial Group Ltd now owns 3,771 shares of the semiconductor company’s stock worth $240,000 after purchasing an additional 159 shares in the last quarter. Finally, Clean Yield Group grew its position in shares of Microchip Technology by 9.4% during the 3rd quarter. Clean Yield Group now owns 1,890 shares of the semiconductor company’s stock valued at $121,000 after purchasing an additional 163 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Bank of America upgraded MCHP from Neutral to Buy and set a $95 price target, signaling material upside vs. the current level and likely supporting investor interest. Read More.
• Positive Sentiment: Zacks Research moved MCHP from Hold to Strong-Buy, adding to the wave of analyst upgrades that have helped push the stock higher this month. Read More.
• Positive Sentiment: UBS and other analysts have publicly said MCHP’s stock price is expected to rise, reinforcing bullish institutional sentiment and supporting upward momentum. Read More.
• Positive Sentiment: Microchip launched the PIC32CM PL10 MCU family (Arm Cortex‑M0+), expanding its low‑cost/performance roadmap — a product-cycle catalyst for revenue in embedded and IoT markets. Read More.
• Positive Sentiment: Zacks notes Microchip has the setup for an earnings beat in the upcoming report, which could lift sentiment if results and guidance exceed expectations. Read More.
• Neutral Sentiment: Analyst coverage remains constructive (average “Moderate Buy”) and many notes recap the one‑year share price run; these are supportive but already reflected in valuations for some investors. Read More.
• Neutral Sentiment: Market write-ups (AAII, Yahoo Finance, Barchart) explain why MCHP rallied (up ~6% in some pieces) and debate valuation and timing — useful for framing risk/reward but not direct catalysts. Read More. Read More. Read More.
• Negative Sentiment: CEO Steve Sanghi sold 98,814 shares (~$8.0M) on Jan. 28, reducing his ownership ~0.99% — insider selling can be perceived negatively by some investors even if part of routine diversification. Read More.

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.