Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Rating of “Moderate Buy” by Brokerages

Microchip Technology Incorporated (NASDAQ:MCHP) has been assigned an average recommendation of “Moderate Buy” from the twenty-six brokerages that are currently covering the company, Marketbeat.com reports. Seven investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and four have issued a strong buy rating on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $97.5217.

A number of research firms recently commented on MCHP. UBS Group reissued a “buy” rating on shares of Microchip Technology in a research report on Tuesday. KeyCorp reissued an “overweight” rating and set a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Wall Street Zen raised shares of Microchip Technology from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Citigroup increased their target price on shares of Microchip Technology from $91.00 to $113.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. increased their target price on shares of Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research report on Friday, May 8th.

Microchip Technology Price Performance

NASDAQ MCHP opened at $96.96 on Wednesday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.18 and a current ratio of 2.09. The firm’s 50 day moving average price is $82.60 and its 200-day moving average price is $73.19. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The company has a market cap of $52.56 billion, a PE ratio of 461.74, a P/E/G ratio of 0.96 and a beta of 1.73.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the firm earned $0.11 earnings per share. The company’s quarterly revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Sell-side analysts forecast that Microchip Technology will post 2.58 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 1.9%. Microchip Technology’s dividend payout ratio is presently 866.67%.

More Microchip Technology News

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

• Positive Sentiment: Microchip said its data center solutions revenue reached $302.7 million in 2025 and is projected to rise about 65% in 2026 to around $500 million, reinforcing a strong growth story in AI and data center infrastructure. Microchip Provides Data Center Solutions Business Unit Revenue Information
• Positive Sentiment: The company launched XpressConnect PCIe 6.0 and CXL 3.1 retimers, which could strengthen its product lineup for AI data centers by improving latency, signal integrity and scalability. XpressConnect PCIe 6.0 and CXL 3.1 Retimers Address Latency and Signal-Integrity Challenges in AI Data Centers
• Positive Sentiment: Microchip will present at the 2026 Evercore Global TMT Conference, giving management another near-term venue to highlight the company’s growth outlook and data center momentum. Microchip Technology to Present at the 2026 Evercore Global TMT Conference
• Neutral Sentiment: The company also announced a board appointment for former executive Mitch Little, a governance update that is unlikely to move the stock on its own. Microchip Technology Appoints Mitch Little to Its Board of Directors
• Neutral Sentiment: Analyst and momentum coverage has remained constructive, with MCHP highlighted as a June momentum name and multiple firms maintaining bullish ratings, supporting the broader upbeat sentiment. 5 Momentum Stocks to Buy for June After an Impressive Rally in May

Insider Activity

In related news, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company’s stock, valued at $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $93.44, for a total transaction of $467,200.00. Following the sale, the chief operating officer directly owned 135,508 shares of the company’s stock, valued at $12,661,867.52. The trade was a 3.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 548,302 shares of company stock worth $49,186,035. 1.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Resonant Capital Advisors LLC lifted its holdings in Microchip Technology by 0.9% in the 1st quarter. Resonant Capital Advisors LLC now owns 12,542 shares of the semiconductor company’s stock valued at $810,000 after purchasing an additional 118 shares in the last quarter. MCF Advisors LLC lifted its holdings in Microchip Technology by 25.8% in the 4th quarter. MCF Advisors LLC now owns 659 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 135 shares in the last quarter. Gagnon Securities LLC lifted its holdings in Microchip Technology by 0.5% in the 4th quarter. Gagnon Securities LLC now owns 27,162 shares of the semiconductor company’s stock valued at $1,731,000 after purchasing an additional 137 shares in the last quarter. Evelyn Partners Investment Management LLP lifted its holdings in Microchip Technology by 1.5% in the 4th quarter. Evelyn Partners Investment Management LLP now owns 9,300 shares of the semiconductor company’s stock valued at $593,000 after purchasing an additional 140 shares in the last quarter. Finally, Millstone Evans Group LLC lifted its holdings in 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. Hedge funds and other institutional investors own 91.51% of the company’s stock.

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.