Rosenblatt Securities Reiterates Buy Rating for Microchip Technology (NASDAQ:MCHP)

Key Points

• Rosenblatt Securities reiterated a Buy rating on Microchip Technology and set a $120 price target, implying 61.38% potential upside from the stock’s $74.36 opening price.
• Microchip exceeded quarterly expectations with $0.76 adjusted EPS and $1.48 billion in revenue, up 38% year over year. Its fiscal second-quarter EPS guidance of $0.91–$0.95 also topped consensus estimates.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and $99.76 target price, though shares fell 4.4% and the company’s elevated valuation and recent insider selling remain concerns.

Microchip Technology (NASDAQ:MCHP - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at Rosenblatt Securities in a research note issued to investors on Friday,Benzinga reports. They presently have a $120.00 target price on the semiconductor company's stock. Rosenblatt Securities' price objective suggests a potential upside of 61.38% from the company's current price.

Several other analysts have also issued reports on MCHP. Wells Fargo & Company dropped their target price on shares of Microchip Technology from $95.00 to $88.00 and set an "equal weight" rating on the stock in a research report on Monday, July 20th. Susquehanna raised their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the company a "positive" rating in a research note on Friday, May 8th. Citigroup lifted their price objective on Microchip Technology from $91.00 to $113.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Cantor Fitzgerald reiterated an "overweight" rating and set a $125.00 price objective on shares of Microchip Technology in a research note on Monday. Finally, TD Cowen reduced their target price on Microchip Technology from $105.00 to $90.00 and set a "hold" rating for the company in a report on Monday, July 13th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $99.76.

Microchip Technology Trading Down 4.4%

Shares of MCHP stock opened at $74.36 on Friday. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $105.91. The company has a market cap of $40.38 billion, a price-to-earnings ratio of 354.11, a PEG ratio of 0.78 and a beta of 1.76. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The stock has a 50 day simple moving average of $87.34 and a 200-day simple moving average of $81.28.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm's revenue for the quarter was up 38.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. On average, equities research analysts expect that Microchip Technology will post 2.7 EPS for the current fiscal year.

Insider Buying and Selling

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,667 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $90.87, for a total value of $333,220.29. Following the transaction, the chief financial officer directly owned 28,573 shares of the company's stock, valued at $2,596,428.51. This trade represents a 11.37% decrease in their position. The transaction 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. Also, Director Matthew W. Chapman sold 10,000 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $95.48, for a total transaction of $954,800.00. Following the completion of the transaction, the director directly owned 20,665 shares in the company, valued at $1,973,094.20. This trade represents a 32.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 26,750 shares of company stock worth $2,543,170. 1.79% of the stock is owned by insiders.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently made changes to their positions in MCHP. Vanguard Group Inc. grew its holdings in Microchip Technology by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company's stock valued at $4,683,824,000 after buying an additional 1,430,781 shares in the last quarter. State Street Corp boosted its position in shares of Microchip Technology by 2.8% during the 4th quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company's stock valued at $1,839,153,000 after acquiring an additional 783,157 shares during the last quarter. Boston Partners grew its holdings in shares of Microchip Technology by 9.5% in the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company's stock valued at $1,044,024,000 after purchasing an additional 1,406,885 shares during the period. Geode Capital Management LLC grew its holdings in shares of Microchip Technology by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company's stock valued at $977,638,000 after purchasing an additional 213,188 shares during the period. Finally, Invesco Ltd. increased its position in Microchip Technology by 4.8% during the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company's stock worth $955,298,000 after purchasing an additional 684,561 shares during the last quarter. Institutional investors and hedge funds own 91.51% of the company's stock.

Trending Headlines about Microchip Technology

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

• Positive Sentiment: Microchip exceeded quarterly expectations, reporting adjusted EPS of $0.76 versus the $0.70 consensus and revenue of $1.48 billion versus $1.46 billion. Revenue increased 38% year over year, while EPS rose substantially from $0.27 in the prior-year period. Microchip Technology earnings report
• Positive Sentiment: The company’s fiscal second-quarter outlook was well above Wall Street expectations. Microchip guided to EPS of $0.91–$0.95 versus a $0.76 consensus and revenue of approximately $1.6 billion versus estimates near $1.5 billion. Management cited strengthening demand for chips used in AI data centers, industrial equipment, automotive applications and aerospace. Reuters: Microchip forecasts upbeat quarterly revenue
• Positive Sentiment: Analyst coverage highlighted potential operating leverage as sales recover. Microchip’s alliance with Micron, involving PCIe Gen 6 switches and SSD solutions, could improve its position in AI data-center infrastructure and increase competition with Broadcom and Astera Labs. Zacks: Microchip and Micron alliance
• Neutral Sentiment: The earnings presentation and call emphasized the recovery trajectory, demand trends and margin potential, giving investors more detail on how quickly the improved revenue environment may translate into profits. Microchip Technology Q1 2027 earnings call transcript
• Negative Sentiment: Despite the favorable results, investors may be taking profits or questioning how much of the recovery is already reflected in the share price. Microchip’s elevated valuation, including a reported P/E above 350, leaves limited room for execution disappointments. The key issue is whether operating leverage can justify the premium investors are paying. Seeking Alpha: Microchip operating leverage and valuation

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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