Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Moderate Buy consensus: 26 analysts rate Microchip an average "Moderate Buy" (15 buy, 3 strong buy, 7 hold, 1 sell) with a 12‑month average price target of $86.00.
• Recent results and outlook: Q1 EPS of $0.44 beat estimates by $0.01 and revenue rose 15.6% YoY to $1.19B, but the company still shows a negative net margin and negative P/E (-253.62) while guiding Q4 FY2026 EPS of $0.48–$0.52.
• Insider activity and market stats: CEO Steve Sanghi sold ~98,814 shares for about $7.96M, insiders own 1.94% vs. institutions' 91.51%; shares trade near $73.55 (52‑week $36.32–$83.35), market cap ~$39.8B, and the stock yields 2.5% from a $0.455 quarterly dividend.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has received an average rating of "Moderate Buy" from the twenty-six research firms that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, seven have given a hold rating, fifteen have assigned a buy rating and three have given a strong buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $86.00.

MCHP has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of Microchip Technology from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. Argus upgraded shares of Microchip Technology to a "strong-buy" rating in a report on Monday, February 9th. B. Riley Financial boosted their target price on shares of Microchip Technology from $85.00 to $95.00 and gave the company a "buy" rating in a report on Monday, January 12th. Piper Sandler boosted their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday, January 15th. Finally, Citigroup reduced their price target on shares of Microchip Technology from $92.00 to $91.00 and set a "buy" rating on the stock in a research report on Friday, February 6th.

Insiders Place Their Bets

In other Microchip Technology news, 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 transaction, the chief executive officer directly owned 9,922,319 shares of the company's stock, valued at $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 1.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Rockefeller Capital Management L.P. raised its holdings in shares of Microchip Technology by 20.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 45,986 shares of the semiconductor company's stock valued at $2,930,000 after buying an additional 7,765 shares during the period. Union Savings Bank purchased a new stake in shares of Microchip Technology during the 4th quarter valued at about $130,000. Bayban purchased a new stake in shares of Microchip Technology during the 4th quarter valued at about $108,000. SHP Wealth Management purchased a new stake in shares of Microchip Technology during the 4th quarter valued at about $63,000. Finally, Caitong International Asset Management Co. Ltd raised its holdings in shares of Microchip Technology by 6,863.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 766 shares of the semiconductor company's stock valued at $49,000 after buying an additional 755 shares during the period. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology Price Performance

Microchip Technology stock opened at $73.55 on Tuesday. Microchip Technology has a 1 year low of $36.32 and a 1 year high of $83.35. The firm has a 50 day moving average price of $70.41 and a 200 day moving average price of $66.76. The company has a market cap of $39.80 billion, a price-to-earnings ratio of -253.62, a PEG ratio of 0.96 and a beta of 1.49. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released 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 negative net margin of 1.57% and a positive return on equity of 7.16%. The firm had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the previous year, the firm earned $0.20 earnings per share. Microchip Technology'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. Sell-side analysts predict that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Monday, February 23rd. Microchip Technology's payout ratio is -627.59%.

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.

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