Microchip Technology (NASDAQ:MCHP) Raised to “Strong-Buy” at Argus

Microchip Technology (NASDAQ:MCHP) was upgraded by investment analysts at Argus to a “strong-buy” rating in a note issued to investors on Monday,Zacks.com reports.

A number of other analysts also recently weighed in on MCHP. Piper Sandler boosted their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. Susquehanna boosted their price objective on Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Rosenblatt Securities upped their price objective on Microchip Technology from $80.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Weiss Ratings raised Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday. Finally, Bank of America raised Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 target price on the stock in a research report on Wednesday, January 28th. Four equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $86.27.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $76.86 on Monday. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $81.43. The business has a 50 day simple moving average of $70.83 and a two-hundred day simple moving average of $65.59. The stock has a market capitalization of $41.59 billion, a PE ratio of -265.03, a P/E/G ratio of 1.86 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the prior year, the firm earned $0.20 EPS. The company’s revenue for the quarter 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, research analysts predict that Microchip Technology will post 1.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction 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 sale, the chief financial officer directly owned 30,089 shares in the company, valued at approximately $1,516,184.71. This trade 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 this link. Also, CEO Steve Sanghi sold 98,814 shares of the business’s stock in a transaction 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 sale, the chief executive officer directly owned 9,922,319 shares of the company’s stock, valued at $799,242,795.45. This represents a 0.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 121,615 shares of company stock worth $9,641,654. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors have recently modified their holdings of the stock. Mizuho Markets Cayman LP purchased a new position in shares of Microchip Technology during the second quarter worth $107,584,000. Boston Partners boosted its holdings in Microchip Technology by 38.0% in the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock valued at $1,040,114,000 after purchasing an additional 4,076,112 shares during the last quarter. Assenagon Asset Management S.A. grew its position in Microchip Technology by 498.0% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock worth $130,675,000 after purchasing an additional 1,694,533 shares during the period. Voya Investment Management LLC raised its stake in shares of Microchip Technology by 37.2% during the 3rd 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. Finally, U.S. Capital Wealth Advisors LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $3,698,000. 91.51% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Microchip Technology

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

• Positive Sentiment: Microchip launched production-ready, full‑stack edge AI solutions that package MCUs/MPUs, pre-trained models and development tools — a clear push into higher‑value embedded AI markets that can expand TAM and support higher ASPs for its devices. Edge AI Release
• Positive Sentiment: Analyst momentum: Argus upgraded MCHP to a “strong-buy” and several firms have raised price targets recently, which can attract fresh inflows and lift sentiment. Argus Upgrade
• Neutral Sentiment: Investor access: Microchip will present at the Wolfe Research Auto/Auto‑Tech & Semiconductor Conference (Feb 11), providing another forum for management to discuss growth drivers and the new Edge AI roadmap with investors. Wolfe Conference
• Negative Sentiment: Microchip priced an upsized offering of convertible senior notes totaling $800M (after a prior $600M announcement). The deal raises near‑term liquidity but increases potential debt and conversion dilution; hedging/capped‑call transactions may blunt dilution, yet investor hedge activity can add share‑price volatility. Convertible Notes Pricing
• Negative Sentiment: Valuation concerns and insider selling: some analysts and commentary flag stretched valuation after the recent run, and public filings show insider share sales in recent months — both potential headwinds for sentiment if momentum fades. Valuation Critique

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.