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

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) have received a consensus rating of “Moderate Buy” from the twenty-four research firms that are presently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, sixteen have given a buy rating and three have assigned a strong buy rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $82.0455.

Several analysts have recently weighed in on MCHP shares. UBS Group lifted their price target on shares of Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Monday. Exane BNP Paribas upgraded Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 22nd. Weiss Ratings reiterated a “sell (d+)” rating on shares of Microchip Technology in a report on Thursday, January 22nd. Morgan Stanley increased their price target on Microchip Technology from $68.00 to $69.00 and gave the stock an “equal weight” rating in a research report on Tuesday, January 6th. Finally, Rosenblatt Securities restated a “buy” rating and set a $80.00 price target on shares of Microchip Technology in a research note on Tuesday, January 6th.

Insider Activity at Microchip Technology

In other news, CEO Steve Sanghi sold 18,509 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 10,021,133 shares in the company, valued at approximately $793,673,733.60. This trade represents a 0.18% decrease in their ownership of the stock. 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 business’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 transaction of $216,273.88. Following the completion of the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at $1,516,184.71. This trade represents a 12.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.94% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

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

Microchip Technology Stock Up 6.8%

NASDAQ:MCHP opened at $80.28 on Thursday. The company has a market cap of $43.39 billion, a price-to-earnings ratio of -178.40, a price-to-earnings-growth ratio of 2.23 and a beta of 1.46. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $81.43. The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80. The stock has a fifty day simple moving average of $66.37 and a 200-day simple moving average of $65.36.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. Microchip Technology had a negative net margin of 4.39% and a positive return on equity of 5.21%. The firm’s revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.46 EPS. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

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

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 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.