Microchip Technology (NASDAQ:MCHP) Sets New 12-Month High Following Analyst Upgrade

Microchip Technology Incorporated (NASDAQ:MCHP) shares reached a new 52-week high during mid-day trading on Wednesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $80.00 and last traded at $80.2020, with a volume of 255027 shares trading hands. The stock had previously closed at $75.16.

A number of other research firms have also commented on MCHP. Rosenblatt Securities reissued a “buy” rating and issued a $80.00 price objective on shares of Microchip Technology in a research note on Tuesday, January 6th. Stifel Nicolaus set a $80.00 price objective on shares of Microchip Technology and gave the stock a “buy” rating in a report on Tuesday, January 6th. Morgan Stanley boosted their target price on shares of Microchip Technology from $68.00 to $69.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 6th. Wells Fargo & Company increased their price target on shares of Microchip Technology from $58.00 to $68.00 and gave the company an “equal weight” rating in a research note on Wednesday, January 7th. Finally, TD Cowen dropped their price objective on shares of Microchip Technology from $65.00 to $60.00 and set a “hold” rating for the company in a research report on Friday, November 7th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $82.05.

Insider Buying and Selling at Microchip Technology

In related 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 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 trade represents a 0.99% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 121,615 shares of company stock valued at $9,641,654 in the last three months. 1.94% of the stock is owned by company insiders.

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.

Hedge Funds Weigh In On Microchip Technology

Large investors have recently added to or reduced their stakes in the company. Parsons Capital Management Inc. RI bought a new position in shares of Microchip Technology during the 2nd quarter worth about $280,000. Mizuho Markets Cayman LP bought a new position in Microchip Technology in the second quarter worth approximately $107,584,000. Boston Partners increased its holdings in shares of Microchip Technology by 38.0% during the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock valued at $1,040,114,000 after acquiring an additional 4,076,112 shares in the last quarter. Assenagon Asset Management S.A. raised its position in shares of Microchip Technology by 498.0% during the third quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock worth $130,675,000 after purchasing an additional 1,694,533 shares during the period. Finally, Voya Investment Management LLC lifted its holdings in shares of Microchip Technology by 37.2% in the 3rd quarter. Voya Investment Management LLC now owns 3,361,581 shares of the semiconductor company’s stock worth $215,881,000 after purchasing an additional 911,731 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Trading Down 1.1%

The firm has a market cap of $42.89 billion, a price-to-earnings ratio of -176.36, a P/E/G ratio of 2.38 and a beta of 1.46. The firm’s 50-day moving average is $66.98 and its 200-day moving average is $65.46. The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80.

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

Microchip Technology Announces Dividend

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