Microchip Technology (NASDAQ:MCHP) Rating Increased to Buy at Bank of America

Bank of America upgraded shares of Microchip Technology (NASDAQ:MCHP) from a neutral rating to a buy rating in a report released on Wednesday, Marketbeat Ratings reports. The brokerage currently has $95.00 price objective on the semiconductor company’s stock.

A number of other research firms have also recently commented on MCHP. Weiss Ratings reissued a “sell (d+)” rating on shares of Microchip Technology in a report on Thursday, January 22nd. Susquehanna boosted their target price on Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Exane BNP Paribas raised shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 22nd. JPMorgan Chase & Co. lifted their price target on shares of Microchip Technology from $77.00 to $85.00 and gave the company an “overweight” rating in a report on Tuesday, January 6th. Finally, Piper Sandler increased their price objective on shares of Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $82.05.

Microchip Technology Price Performance

MCHP stock opened at $80.28 on Wednesday. The company’s 50-day moving average price is $66.37 and its two-hundred day moving average price is $65.36. The firm 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. The company has a quick ratio of 1.20, a current ratio of 2.25 and a debt-to-equity ratio of 0.80. Microchip Technology has a 12 month low of $34.13 and a 12 month high of $81.43.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The company had revenue of $1.14 billion during 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 quarterly revenue was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.46 EPS. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. On average, analysts anticipate that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

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 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Monday, November 24th. Microchip Technology’s dividend payout ratio is presently -404.44%.

Insider Buying and Selling at Microchip Technology

In other news, CEO Steve Sanghi sold 18,509 shares of the firm’s stock in a transaction dated Thursday, January 22nd. The stock was 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 directly owned 10,021,133 shares in the company, 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology 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 directly 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. 1.94% of the stock is owned by company insiders.

Institutional Trading of Microchip Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of Microchip Technology in the 2nd quarter valued at $473,320,000. Dodge & Cox lifted its holdings in 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 buying an additional 5,740,827 shares during the period. Boston Partners lifted its holdings in Microchip Technology by 38.2% in the second quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock valued at $1,041,868,000 after buying an additional 4,101,034 shares during the period. State Street Corp boosted its position in Microchip Technology by 8.5% during the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after acquiring an additional 2,489,258 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew 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 acquiring an additional 2,257,932 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

More Microchip Technology News

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

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.