Microchip Technology Incorporated (NASDAQ:MCHP) Receives Average Rating of “Moderate Buy” from Analysts

Microchip Technology Incorporated (NASDAQ:MCHP) has been given an average rating of “Moderate Buy” by the twenty-four research firms that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, four have given a hold recommendation, sixteen have issued a buy recommendation and three have given a strong buy recommendation to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $82.0455.

Several research analysts have recently weighed in on MCHP shares. Rosenblatt Securities reissued a “buy” rating and set a $80.00 price target on shares of Microchip Technology in a research report on Tuesday, January 6th. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price on the stock in a research note on Thursday, January 22nd. TD Cowen dropped 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. Stifel Nicolaus set a $80.00 price target on shares of Microchip Technology and gave the company a “buy” rating in a research report on Tuesday, January 6th. Finally, Exane BNP Paribas upgraded Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 22nd.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 18,509 shares of the stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $79.20, for a total transaction of $1,465,912.80. Following the completion of the transaction, the chief executive officer owned 10,021,133 shares of the company’s stock, valued at $793,673,733.60. This trade represents a 0.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total transaction of $216,273.88. Following the sale, the chief financial officer owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MCHP. Norges Bank purchased a new stake in Microchip Technology during the second quarter worth about $473,320,000. Dodge & Cox grew its holdings in shares of Microchip Technology by 958.4% in the second quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock valued at $446,132,000 after purchasing an additional 5,740,827 shares in the last quarter. Boston Partners increased its stake in Microchip Technology by 38.2% during the 2nd quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock worth $1,041,868,000 after buying an additional 4,101,034 shares during the period. State Street Corp lifted its holdings in Microchip Technology by 8.5% during the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock worth $2,244,016,000 after buying an additional 2,489,258 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in Microchip Technology by 25.7% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock worth $709,506,000 after buying an additional 2,257,932 shares in 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: Multiple analyst upgrades and bullish commentary lifted investor sentiment — Zacks upgraded MCHP to a “strong-buy” and Bank of America raised its rating to “buy” with a $95 target (~18% above the current price). UBS also issued a positive note saying shares are expected to rise. Zacks Upgrade BofA Coverage UBS Note
• Positive Sentiment: Inclusion on Zacks’ Rank #1 (Strong Buy) lists for momentum and income increases visibility among retail and quant buyers, which can amplify short-term flows. Zacks Momentum List Zacks Income List
• Positive Sentiment: Product development: Microchip expanded its maXTouch M1 touchscreen controller family to cover a wider range of automotive displays (2–42″), strengthening its addressable market in automotive infotainment and display applications. This supports longer-term revenue opportunity in a high-value end market. maXTouch Product Release
• Neutral Sentiment: Recent fundamentals: the company beat Q2 estimates on EPS and revenue and provided Q3 FY2026 EPS guidance (0.340–0.400), but revenue was slightly down year-over-year — a mixed fundamental backdrop that makes upgrades and product news more impactful in the short term. MarketBeat Earnings Summary
• Negative Sentiment: Insider activity: CEO Steve Sanghi sold 18,509 shares (~0.18% reduction in his position), a relatively small transaction but one that some investors note when management sells into strength. Insider Sale

Microchip Technology Trading Up 6.8%

Shares of Microchip Technology stock opened at $80.28 on Thursday. 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’s 50 day simple moving average is $66.37 and its 200-day simple moving average is $65.36. The stock has a market cap of $43.39 billion, a P/E ratio of -178.40, a P/E/G ratio of 2.23 and a beta of 1.46. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $81.43.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Thursday, November 6th. The semiconductor company reported $0.35 EPS 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 firm’s revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.46 earnings per share. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Analysts predict that Microchip Technology will post 1.03 EPS for the current fiscal year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 9th. Investors of record on Monday, November 24th were issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.3%. The ex-dividend date was Monday, November 24th. Microchip Technology’s payout ratio is -404.44%.

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.