Microchip Technology (NASDAQ:MCHP) Price Target Raised to $84.00

Microchip Technology (NASDAQ:MCHP) had its price objective increased by Needham & Company LLC from $77.00 to $84.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have a buy rating on the semiconductor company’s stock.

Several other analysts have also issued reports on MCHP. Cantor Fitzgerald boosted their target price on shares of Microchip Technology from $85.00 to $100.00 and gave the company an “overweight” rating in a research report on Monday, February 2nd. Stifel Nicolaus set a $80.00 price target on shares of Microchip Technology and gave the stock a “buy” rating in a research note on Tuesday, January 6th. TD Cowen reduced their price objective on Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research note on Friday, November 7th. Mizuho lifted their target price on Microchip Technology from $80.00 to $83.00 and gave the company an “outperform” rating in a research report on Friday, January 9th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $80.00 price target on shares of Microchip Technology in a report on Tuesday, January 6th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $86.27.

Microchip Technology Stock Performance

Shares of MCHP opened at $76.01 on Friday. The firm has a market capitalization of $41.13 billion, a P/E ratio of -262.10, a PEG ratio of 1.93 and a beta of 1.46. 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 one year low of $34.13 and a one year high of $81.43. The business has a fifty day moving average of $70.01 and a 200 day moving average of $65.49.

Microchip Technology (NASDAQ:MCHP) last announced its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.01. The business 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 7.16% and a negative net margin of 1.57%.The business’s revenue for the quarter was up 15.6% on a year-over-year basis. During the same period last year, the firm posted $0.20 earnings per share. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, sell-side analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Monday, February 23rd will be given a dividend of $0.455 per share. The ex-dividend date is Monday, February 23rd. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. Microchip Technology’s dividend payout ratio (DPR) is currently -404.44%.

Insider Activity at Microchip Technology

In related news, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at approximately $799,242,795.45. The trade was a 0.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was 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 $1,516,184.71. The trade was 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 in the last three months. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Hedge funds have recently bought and sold shares of the stock. Winnow Wealth LLC bought a new stake in shares of Microchip Technology in the third quarter worth about $25,000. Root Financial Partners LLC purchased a new position in Microchip Technology during the 3rd quarter valued at approximately $28,000. Salomon & Ludwin LLC increased its stake in Microchip Technology by 219.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 329 shares during the last quarter. Quent Capital LLC purchased a new stake in shares of Microchip Technology during the 3rd quarter worth approximately $32,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in shares of 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 worth $33,000 after acquiring an additional 267 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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

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.