Microchip Technology (NASDAQ:MCHP) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut its price target on Microchip Technology to $72 from $103 and maintained an “equal weight” rating; the target implied 17.38% upside from the share price cited in the report.
• Analyst views were mixed, though MarketBeat’s consensus was “Moderate Buy” with an average price target of $90.18. Citi and Wells Fargo also lowered targets, while UBS maintained a Buy rating.
• Microchip beat quarterly estimates, reporting EPS of $0.97 versus $0.94 expected and revenue of $1.62 billion, up 42.2% year over year.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price target decreased by Morgan Stanley from $103.00 to $72.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the semiconductor company's stock. Morgan Stanley's price target indicates a potential upside of 17.38% from the stock's current price.

Other equities research analysts also recently issued reports about the company. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Weiss Ratings upgraded shares of Microchip Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Citigroup cut their target price on shares of Microchip Technology from $95.00 to $75.00 and set a "buy" rating on the stock in a report on Friday. Wells Fargo & Company reduced their price target on shares of Microchip Technology from $80.00 to $70.00 and set an "equal weight" rating for the company in a research report on Friday. Finally, UBS Group reiterated a "buy" rating and set a $120.00 price target (down from $130.00) on shares of Microchip Technology in a research note on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $90.18.

Microchip Technology Stock Up 5.1%

Shares of NASDAQ:MCHP traded up $2.99 during trading on Monday, hitting $61.34. 7,534,032 shares of the company were exchanged, compared to its average volume of 10,544,920. The firm's 50 day moving average price is $74.85 and its 200-day moving average price is $79.41. Microchip Technology has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.24 and a quick ratio of 1.33. The stock has a market capitalization of $33.31 billion, a P/E ratio of 46.39, a PEG ratio of 0.40 and a beta of 1.84.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its earnings results on Thursday, November 5th. The semiconductor company reported $0.97 EPS for the quarter, beating analysts' consensus estimates of $0.94 by $0.03. Microchip Technology had a net margin of 14.96% and a return on equity of 20.32%. The firm had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same period last year, the firm posted $0.35 EPS. The company's revenue was up 42.2% on a year-over-year basis. On average, research analysts predict that Microchip Technology will post 3.20 earnings per share for the current fiscal year.

Insider Buying and Selling at Microchip Technology

In other news, CFO James Bjornholt sold 4,112 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares of the company's stock, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.79% of the company's stock.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. TOP Private Wealth LLC. acquired a new stake in Microchip Technology in the 2nd quarter valued at about $29,000. GK Wealth Management LLC purchased a new position in Microchip Technology in the third quarter valued at about $29,000. Continuum Advisory LLC purchased a new position in Microchip Technology in the second quarter valued at about $30,000. Johnson Financial Group Inc. acquired a new stake in Microchip Technology during the 2nd quarter valued at approximately $31,000. Finally, Rakuten Securities Inc. acquired a new stake in Microchip Technology during the 2nd quarter valued at approximately $34,000. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology News Roundup

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

• Positive Sentiment: Microchip’s data-center design wins may support growth: the segment was described as its fastest-growing business, though it remains a portion of sales. MCHP Q3 CY2026 deep dive
• Positive Sentiment: JPMorgan lowered its target to $100 from $120 but maintained an overweight rating; Barclays cut its target to $90 from $105 and kept an equal-weight rating. Both targets are above the referenced share price. JPMorgan recommendations Barclays recommendations
• Negative Sentiment: The deep-dive coverage flags a cautious outlook and supply constraints, which could limit the company’s ability to convert demand and design wins into near-term growth. MCHP Q3 CY2026 deep dive
• Negative Sentiment: Further target reductions from Citi, Truist and Jefferies add to concern that analysts are reassessing the outlook. Commentary also cited macro headwinds, tougher comparisons and potentially fading margin strength. Citi target cut Truist target cut Jefferies target reduction Microchip Technology outlook analysis

Microchip Technology Company Profile

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