Microchip Technology (NASDAQ:MCHP) Upgraded at Zacks Research

Zacks Research upgraded shares of Microchip Technology (NASDAQ:MCHP) from a hold rating to a strong-buy rating in a research report released on Monday,Zacks.com reports.

MCHP has been the topic of several other research reports. Susquehanna upped their price target on shares of Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a report on Thursday, January 22nd. Truist Financial restated a “hold” rating and issued a $60.00 target price (down from $64.00) on shares of Microchip Technology in a research note on Friday, November 7th. Piper Sandler lifted their price target on Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a research report on Thursday, January 15th. KeyCorp restated an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. Finally, Wells Fargo & Company raised their target price 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. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $82.05.

Microchip Technology Trading Up 6.8%

Shares of MCHP opened at $80.28 on Monday. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $81.43. The stock has a market cap of $43.39 billion, a PE 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. The business’s 50-day moving average price is $66.37 and its 200-day moving average price is $65.36.

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

Microchip Technology Announces Dividend

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

Insider Buying and Selling

In related news, CEO Steve Sanghi sold 18,509 shares of Microchip Technology stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $79.20, for a total value of $1,465,912.80. Following the transaction, the chief executive officer owned 10,021,133 shares in the company, valued at $793,673,733.60. This trade represents a 0.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Eric Bjornholt sold 4,292 shares of the company’s 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. The trade was a 12.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. B. Metzler seel. Sohn & Co. AG grew its position in Microchip Technology by 16.8% during the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 295,698 shares of the semiconductor company’s stock worth $18,953,000 after acquiring an additional 42,512 shares during the last quarter. HB Wealth Management LLC boosted its stake in shares of Microchip Technology by 3.8% during the fourth quarter. HB Wealth Management LLC now owns 23,425 shares of the semiconductor company’s stock valued at $1,493,000 after purchasing an additional 865 shares during the period. Kingswood Wealth Advisors LLC bought a new position in shares of Microchip Technology in the fourth quarter worth approximately $230,000. Migdal Insurance & Financial Holdings Ltd. increased its stake in shares of Microchip Technology by 49.7% in the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 871 shares of the semiconductor company’s stock worth $56,000 after buying an additional 289 shares during the period. Finally, OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Microchip Technology during the 4th quarter valued at $631,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.

Microchip Technology News Summary

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.