Microchip Technology (NASDAQ:MCHP) Given New $105.00 Price Target at Truist Financial

Key Points

• Truist raised its price target on Microchip to $105 (from $69) while maintaining a "hold" rating, implying roughly a 6.7% upside from the prior close.
• Microchip beat Q4 expectations with revenue up 35.1% year‑over‑year to $1.31 billion and EPS above estimates, and management issued Q1 FY27 EPS guidance of $0.670–$0.710, prompting several brokers to lift targets (some toward ~$120) and a consensus "Moderate Buy" view.
• Insiders have been net sellers (CEO sold 76,469 shares; insiders sold 526,552 shares over three months), and the stock's strong YTD run and elevated multiples have prompted warnings about profit‑taking risk as the share price trades near the high-$90s.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its price objective boosted by equities research analysts at Truist Financial from $69.00 to $105.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "hold" rating on the semiconductor company's stock. Truist Financial's target price would suggest a potential upside of 6.68% from the company's previous close.

Several other equities analysts have also recently weighed in on the stock. Citigroup decreased their target price on shares of Microchip Technology from $92.00 to $91.00 and set a "buy" rating for the company in a research note on Friday, February 6th. Piper Sandler raised their target price on shares of Microchip Technology from $80.00 to $85.00 and gave the company an "overweight" rating in a research note on Thursday, January 15th. Rosenblatt Securities raised their target price on shares of Microchip Technology from $115.00 to $120.00 and gave the company a "buy" rating in a research note on Friday. Jefferies Financial Group reissued a "hold" rating on shares of Microchip Technology in a research note on Wednesday, February 4th. Finally, KeyCorp reissued an "overweight" rating and issued a $85.00 target price on shares of Microchip Technology in a research note on Friday, February 6th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $91.78.

Microchip Technology Stock Down 3.1%

Shares of NASDAQ:MCHP traded down $3.15 during midday trading on Friday, hitting $98.43. The stock had a trading volume of 8,232,823 shares, compared to its average volume of 9,492,444. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91. The company has a quick ratio of 1.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.82. The business's 50-day simple moving average is $73.27 and its 200-day simple moving average is $69.20. The company has a market cap of $53.26 billion, a P/E ratio of -339.60, a PEG ratio of 1.38 and a beta of 1.75.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same period last year, the business earned $0.11 earnings per share. The firm's revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts forecast that Microchip Technology will post 1.16 earnings per share for the current fiscal year.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer owned 9,385,834 shares of the company's stock, valued at $878,326,345.72. This trade represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 526,552 shares of company stock worth $47,130,465. Company insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

Hedge funds have recently added to or reduced their stakes in the business. Winnow Wealth LLC acquired a new stake in Microchip Technology during the 3rd quarter valued at $25,000. Root Financial Partners LLC acquired a new stake in Microchip Technology during the 3rd quarter valued at $28,000. EFG International AG acquired a new stake in shares of Microchip Technology during the fourth quarter worth $29,000. Miller Capital Partners Inc. acquired a new stake in shares of Microchip Technology during the fourth quarter worth $29,000. Finally, Quent Capital LLC acquired a new stake in shares of Microchip Technology during the third quarter worth $32,000. Institutional investors and hedge funds own 91.51% of the company's stock.

Key Microchip Technology News

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

• Positive Sentiment: Q4 results and guidance beat expectations — revenue rose 35.1% year‑over‑year to $1.31B and non‑GAAP EPS topped estimates; management issued Q1/FY27 revenue and EPS guidance substantially above consensus, which drove an earlier post‑earnings pop. Microchip Tech forecasts quarterly revenue above estimates
• Positive Sentiment: Multiple brokerages raised targets and ratings to ~$120 (Susquehanna, Needham, Rosenblatt), implying ~20% upside from current levels — a sign analysts are re‑rating the shares after the beat and stronger outlook. Analyst price target raises (Benzinga)Needham raise (TickerReport)
• Positive Sentiment: Board declared a quarterly cash dividend of $0.455/share (payable June 5; ex‑div May 22), reinforcing shareholder returns. Dividend announcement (GlobeNewswire)
• Neutral Sentiment: New product wins/announcements expand exposure to automotive, industrial and data‑center markets (SPE PHYs, timing modules with Intel) — positive long‑term but not an immediate earnings driver. SPE PHYs announcement (GlobeNewswire)Timing modules with Intel (Yahoo)
• Negative Sentiment: Valuation and recent run‑up raise profit‑taking risk — MCHP has rallied strongly YTD, and some coverage highlights elevated multiples and the question of whether upside is already priced in. Also note GAAP net margin nuances referenced in the release. Valuation / run-up discussion (Yahoo)Earnings details (MarketBeat)

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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