Microchip Technology (NASDAQ:MCHP) Shares Gap Down on Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP) gapped down before the market opened on Friday after Citigroup lowered their price target on the stock from $92.00 to $91.00. The stock had previously closed at $78.04, but opened at $74.41. Citigroup currently has a buy rating on the stock. Microchip Technology shares last traded at $75.0370, with a volume of 1,987,291 shares traded.

Other equities analysts have also issued reports about the company. B. Riley Financial upped their target price on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 12th. Stifel Nicolaus set a $80.00 price target on shares of Microchip Technology and gave the company a “buy” rating in a report on Tuesday, January 6th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Microchip Technology in a research note on Thursday, January 22nd. TD Cowen dropped their target price 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. Finally, Jefferies Financial Group reaffirmed a “hold” rating on shares of Microchip Technology in a research report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $86.27.

Insider Activity

In other news, CFO James Eric Bjornholt sold 4,292 shares of the company’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 approximately $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Sanghi sold 98,814 shares of the firm’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer directly owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 121,615 shares of company stock worth $9,641,654. 1.94% of the stock is owned by company insiders.

Trending Headlines about Microchip Technology

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Multiple broker upgrades and higher price targets — notable raises include JPMorgan to $95 (overweight), Mizuho to $90 (outperform), Rosenblatt to $115 (buy), and Needham to $84 — these lifts signal fresh upside expectations. Benzinga
• Positive Sentiment: Q3 results: MCHP beat EPS (reported $0.44 vs. $0.43 consensus), revenue up ~15.6% YoY, and management raised Q4 EPS guidance to $0.480–$0.520 (above consensus) — a constructive operational recovery and improving margins. Earnings Report
• Positive Sentiment: Strategic and cash returns: company announced a $0.455 quarterly dividend (yield ~2.4%) and a collaboration with Hyundai on single‑pair Ethernet for automotive connectivity — supports long‑term TAM in automotive/industrial markets. Dividend Hyundai Collaboration
• Positive Sentiment: Unusual options activity: extremely large call buying (≈87,550 calls, ~1,038% above average) — signals speculative/positioning interest that can amplify upside moves if catalysts continue.
• Neutral Sentiment: Citigroup trimmed its target slightly (from $92 to $91) but kept a Buy rating — a modest adjustment that leaves upside intact but is not a strong directional signal. Benzinga
• Negative Sentiment: Macro/supply headwind: Reuters reports Microchip forecasted Q4 profit below some estimates and flagged memory‑supply issues — this created investor caution despite the beat. Reuters
• Negative Sentiment: Some analysts remain conservative or cut targets — Wells Fargo (raised PT to $70 but rated equal weight), Truist to $68 (hold), and TD Cowen lowered target to $70 — these calls imply limited near‑term upside and help explain selling pressure. TickerReport/Wells Fargo Benzinga TipRanks/TD Cowen
• Negative Sentiment: Market reaction: several headlines note shares fell after the quarter despite the beat — suggests investors focused on supply commentary and cautious forward earnings phrasing. Zacks

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its holdings in shares of Microchip Technology by 27.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the semiconductor company’s stock worth $234,000 after acquiring an additional 782 shares during the period. Mizuho Markets Cayman LP grew its position in Microchip Technology by 0.3% in the 4th quarter. Mizuho Markets Cayman LP now owns 1,535,360 shares of the semiconductor company’s stock worth $97,833,000 after purchasing an additional 4,600 shares during the last quarter. Addison Advisors LLC increased its stake in shares of Microchip Technology by 193.7% in the fourth quarter. Addison Advisors LLC now owns 702 shares of the semiconductor company’s stock valued at $45,000 after purchasing an additional 463 shares during the period. Global Retirement Partners LLC increased its stake in shares of Microchip Technology by 99.7% in the fourth quarter. Global Retirement Partners LLC now owns 9,061 shares of the semiconductor company’s stock valued at $577,000 after purchasing an additional 4,524 shares during the period. Finally, Sierra Summit Advisors LLC raised its holdings in shares of Microchip Technology by 2.2% during the fourth quarter. Sierra Summit Advisors LLC now owns 33,458 shares of the semiconductor company’s stock valued at $2,132,000 after buying an additional 710 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Stock Performance

The firm has a market capitalization of $41.08 billion, a price-to-earnings ratio of -262.10, a P/E/G ratio of 2.00 and a beta of 1.46. The company has a 50-day moving average price of $70.01 and a 200-day moving average price of $65.59. 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 (NASDAQ:MCHP) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.08% and a negative net margin of 1.57%.The firm had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same period last year, the firm earned $0.20 EPS. The firm’s revenue was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, equities research analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Monday, February 23rd will be issued a $0.455 dividend. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $1.82 annualized dividend and a yield of 2.4%. Microchip Technology’s dividend payout ratio is presently -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.