Microchip Technology (NASDAQ:MCHP) Shares Up 6.7% - What's Next?

Key Points

• Shares jumped 6.7% intraday to about $87.98 on Thursday, though trading volume was roughly 75% below the average session; market capitalization is about $49.4 billion.
• Analysts collectively rate Microchip as a Moderate Buy with a consensus price target of $86.00 (individual targets clustered roughly $80–$90); ratings include 3 Strong Buy, 15 Buy, 7 Hold and 1 Sell.
• Fundamentals show a slight beat on EPS ($0.44 vs. $0.43) and revenue of $1.19B (+15.6% YoY), company guidance for Q4 2026 EPS of $0.480–0.520, a $0.455 quarterly dividend (2.0% yield), and an insider sale by CEO Steve Sanghi of ~98,814 shares.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report)'s share price shot up 6.7% during mid-day trading on Thursday . The company traded as high as $88.74 and last traded at $87.9760. 2,263,391 shares changed hands during trading, a decline of 75% from the average session volume of 9,042,465 shares. The stock had previously closed at $82.48.

Analysts Set New Price Targets

MCHP has been the topic of a number of recent research reports. Wolfe Research set a $85.00 target price on Microchip Technology in a report on Tuesday, January 6th. Stifel Nicolaus set a $90.00 target price on Microchip Technology in a report on Friday, February 6th. Piper Sandler increased their target price on Microchip Technology from $80.00 to $85.00 and gave the stock an "overweight" rating in a report on Thursday, January 15th. Jefferies Financial Group reiterated a "hold" rating on shares of Microchip Technology in a report on Wednesday, February 4th. Finally, Barclays initiated coverage on Microchip Technology in a report on Thursday, February 12th. They issued an "equal weight" rating and a $80.00 target price on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Microchip Technology currently has an average rating of "Moderate Buy" and a consensus price target of $86.00.

Microchip Technology Price Performance

The firm has a market capitalization of $49.42 billion, a PE ratio of -314.93, a price-to-earnings-growth ratio of 1.08 and a beta of 1.49. The business has a 50-day moving average of $70.55 and a 200 day moving average of $67.40. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.01. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.19 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.Microchip Technology's quarterly revenue was up 15.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, research analysts anticipate that Microchip Technology Incorporated will post 1.16 EPS for the current fiscal year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were given a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend was Monday, February 23rd. Microchip Technology's dividend payout ratio is presently -627.59%.

Insider Buying and Selling

In related news, CEO Steve Sanghi sold 98,814 shares of the stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer directly owned 9,922,319 shares of the company's stock, valued at approximately $799,242,795.45. This represents a 0.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC increased its position in shares of Microchip Technology by 51.3% during the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company's stock valued at $827,000 after purchasing an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company's stock valued at $59,000 after purchasing an additional 616 shares during the last quarter. Cresset Asset Management LLC increased its position in shares of Microchip Technology by 5.4% during the 2nd quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company's stock valued at $805,000 after purchasing an additional 589 shares during the last quarter. AXA S.A. increased its position in shares of Microchip Technology by 21.3% during the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company's stock valued at $3,628,000 after purchasing an additional 9,043 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its position in shares of Microchip Technology by 1.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company's stock valued at $17,348,000 after purchasing an additional 3,851 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

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.

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