Microchip Technology (NASDAQ:MCHP) Rating Increased to Buy at Wall Street Zen

Microchip Technology (NASDAQ:MCHP) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

Several other analysts have also issued reports on the company. JPMorgan Chase & Co. upped their target price on Microchip Technology from $85.00 to $95.00 and gave the stock an “overweight” rating in a report on Friday. BNP Paribas Exane raised shares of Microchip Technology from a “neutral” rating to an “outperform” rating and set a $90.00 target price for the company in a research note on Thursday, January 22nd. Mizuho upped their price target on shares of Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a research report on Friday. Stifel Nicolaus set a $90.00 price objective on shares of Microchip Technology in a research note on Friday. Finally, Rosenblatt Securities raised their target price on shares of Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a research note on Friday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Microchip Technology currently has a consensus rating of “Moderate Buy” and an average target price of $86.27.

Microchip Technology Price Performance

Shares of MCHP stock opened at $76.01 on Friday. 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. The firm has a fifty day moving average of $70.01 and a 200-day moving average of $65.59. The firm has a market capitalization of $41.08 billion, a price-to-earnings ratio of -262.10, a price-to-earnings-growth ratio of 2.00 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the previous year, the firm earned $0.20 earnings per share. The company’s revenue was up 15.6% on a year-over-year basis. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

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 shares were sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the sale, the chief financial officer owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Steve Sanghi sold 98,814 shares of Microchip Technology stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the completion of the transaction, the chief executive officer directly owned 9,922,319 shares in the company, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 121,615 shares of company stock valued at $9,641,654 in the last ninety days. 1.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Institutional investors have recently modified their holdings of the business. Norges Bank bought a new position in Microchip Technology in the second quarter valued at about $473,320,000. Dodge & Cox grew its holdings in shares of Microchip Technology by 958.4% during the 2nd quarter. Dodge & Cox now owns 6,339,800 shares of the semiconductor company’s stock valued at $446,132,000 after purchasing an additional 5,740,827 shares during the last quarter. Boston Partners increased its position in Microchip Technology by 38.2% during the 2nd quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock worth $1,041,868,000 after purchasing an additional 4,101,034 shares in the last quarter. State Street Corp lifted its stake in Microchip Technology by 8.5% in the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after purchasing an additional 2,489,258 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC boosted its position in Microchip Technology by 25.7% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock valued at $709,506,000 after buying an additional 2,257,932 shares in the last quarter. Institutional investors and hedge funds own 91.51% of the company’s stock.

Key Headlines Impacting 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

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.