Microchip Technology (NASDAQ:MCHP) Hits New 1-Year High Following Analyst Upgrade

Microchip Technology Incorporated (NASDAQ:MCHP)’s stock price reached a new 52-week high on Wednesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $80.00 and last traded at $80.2020, with a volume of 255027 shares. The stock had previously closed at $75.16.

Several other equities research analysts have also recently issued reports on the company. JPMorgan Chase & Co. lifted their price objective on Microchip Technology from $77.00 to $85.00 and gave the stock an “overweight” rating in a report on Tuesday, January 6th. UBS Group lifted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday. 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 report on Thursday, January 22nd. B. Riley raised their target price on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a report on Monday, January 12th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of Microchip Technology in a research note on Wednesday, December 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $82.05.

Insiders Place Their Bets

In other news, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction 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 sale, the chief financial officer owned 30,089 shares in the company, valued at $1,516,184.71. This represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Steve Sanghi sold 18,509 shares of Microchip Technology stock in a transaction that occurred on 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 owned 10,021,133 shares in the company, valued at approximately $793,673,733.60. This trade represents a 0.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.94% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Multiple major firms raised ratings/targets on MCHP (e.g., Bank of America bumped to a Buy with a $95 target; UBS raised its target to $95 and maintained a Buy). Analyst momentum and higher price targets point to upside versus current levels. Bank of America upgrade / Finviz UBS target raise / Benzinga
• Positive Sentiment: Zacks upgraded MCHP from Hold to Strong Buy and added the stock to multiple Zacks Rank #1 lists (momentum and income), increasing buy-side attention from retail and quant-driven funds. Zacks upgrade / Zacks.com
• Positive Sentiment: Microchip expanded its maXTouch® M1 touchscreen-controller family to cover a broader range of automotive displays (2–42 inches), reinforcing revenue exposure to automotive infotainment and ADAS displays. Product wins/roadmap execution support longer-term demand. maXTouch M1 expansion / GlobeNewswire
• Positive Sentiment: Third-party coverage suggests upside: UBS/other analysts publicly expect MCHP’s shares to rise, adding another layer of favorable research coverage. This reinforces the buy-side narrative. UBS analyst coverage / AmericanBankingNews
• Neutral Sentiment: CEO Steve Sanghi disclosed the sale of 18,509 shares (small ~0.18% reduction in his holding). The trade raises disclosure attention but is modest relative to his overall ownership. Insider sale / InsiderTrades
• Neutral Sentiment: Institutional positioning updates and multiple analyst target changes (Susquehanna, Citigroup, Mizuho, etc.) increase liquidity and attention; these are supportive but reflect consensus re-rating rather than new fundamental beats. Institutional & analyst notes / MarketBeat

Institutional Trading of Microchip Technology

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of Microchip Technology in the second quarter valued at about $473,320,000. Dodge & Cox boosted 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 acquiring an additional 5,740,827 shares during the last quarter. Boston Partners lifted its stake in shares of Microchip Technology by 38.2% in the 2nd quarter. Boston Partners now owns 14,827,447 shares of the semiconductor company’s stock valued at $1,041,868,000 after purchasing an additional 4,101,034 shares during the period. State Street Corp increased its stake in Microchip Technology by 8.5% in 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 purchasing an additional 2,489,258 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its position in shares of Microchip Technology by 25.7% in the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 11,048,057 shares of the semiconductor company’s stock valued at $709,506,000 after purchasing an additional 2,257,932 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

Microchip Technology Price Performance

The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80. The company has a 50 day simple moving average of $65.78 and a 200-day simple moving average of $65.26. The stock has a market cap of $42.70 billion, a price-to-earnings ratio of -176.86, a P/E/G ratio of 2.21 and a beta of 1.46.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. The firm had revenue of $1.14 billion for 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%. The company’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.46 earnings per share. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Research analysts expect that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Monday, November 24th. Microchip Technology’s dividend payout ratio is -404.44%.

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.