Microchip Technology (NASDAQ:MCHP) Shares Gap Down After Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price gapped down prior to trading on Friday after Citigroup lowered their price target on the stock from $92.00 to $91.00. The stock had previously closed at $78.04, but opened at $74.41. Citigroup currently has a buy rating on the stock. Microchip Technology shares last traded at $75.0370, with a volume of 1,987,291 shares.

Several other analysts have also issued reports on MCHP. TD Cowen lowered their target price on Microchip Technology from $65.00 to $60.00 and set a “hold” rating on the stock in a research note on Friday, November 7th. Needham & Company LLC lifted their price objective on Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a report on Friday. Morgan Stanley boosted their price objective on Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 6th. Jefferies Financial Group reiterated a “hold” rating on shares of Microchip Technology in a research report on Wednesday. Finally, Mizuho lifted their target price 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 given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $86.27.

Insider Activity at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. This represents a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction that occurred on 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 owned 30,089 shares in the company, valued at $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 121,615 shares of company stock valued at $9,641,654. 1.94% of the stock is owned by corporate insiders.

Key Headlines Impacting Microchip Technology

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

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. Winnow Wealth LLC purchased a new position in Microchip Technology in the 3rd quarter worth approximately $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology during the 3rd quarter worth $28,000. Salomon & Ludwin LLC grew its position 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 acquiring an additional 329 shares in the last quarter. Quent Capital LLC bought a new position in Microchip Technology in the third quarter valued at $32,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its position in 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 in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Performance

The company has a 50 day simple moving average of $70.01 and a 200-day simple moving average of $65.52. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.25 and a quick ratio of 1.20. The stock has a market cap of $41.08 billion, a P/E ratio of -262.10, a price-to-earnings-growth ratio of 1.95 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. The company had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. Microchip Technology had a positive return on equity of 7.08% and a negative net margin of 1.57%.Microchip Technology’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same period last year, the firm posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities analysts expect that Microchip Technology Incorporated will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

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

About Microchip Technology

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.