Microchip Technology (NASDAQ:MCHP) Upgraded at Argus

Argus upgraded shares of Microchip Technology (NASDAQ:MCHP) to a strong-buy rating in a research note issued to investors on Monday,Zacks.com reports.

MCHP has been the subject of several other reports. Zacks Research upgraded shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Citigroup lowered their price objective on Microchip Technology from $92.00 to $91.00 and set a “buy” rating for the company in a research report on Friday, February 6th. KeyCorp restated an “overweight” rating and issued a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Rosenblatt Securities increased their price target on Microchip Technology from $80.00 to $115.00 and gave the stock a “buy” rating in a report on Friday, February 6th. Finally, Mizuho boosted their price objective on shares of Microchip Technology from $83.00 to $90.00 and gave the company an “outperform” rating in a report on Friday, February 6th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $86.27.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $80.75 on Monday. The company has a market cap of $43.70 billion, a P/E ratio of -278.45, a P/E/G ratio of 1.94 and a beta of 1.46. Microchip Technology has a twelve month low of $34.13 and a twelve month high of $81.43. The company’s 50-day moving average price is $71.17 and its 200-day moving average price is $65.69. 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) last released its quarterly earnings data 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 company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. Microchip Technology’s quarterly revenue was up 15.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 EPS. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, sell-side analysts forecast that Microchip Technology will post 1.03 earnings per share for the current fiscal year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be given a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, February 23rd. Microchip Technology’s dividend payout ratio is currently -627.59%.

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 4,292 shares of Microchip Technology stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $50.39, for a total value of $216,273.88. Following the completion of the transaction, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. The trade was a 12.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $80.55, for a total transaction of $7,959,467.70. Following the sale, the chief executive officer directly owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. The trade was a 0.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 121,615 shares of company stock valued at $9,641,654. Insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Mizuho Markets Cayman LP acquired a new position in Microchip Technology during the second quarter worth $107,584,000. Boston Partners grew its holdings in Microchip Technology by 38.0% in the second quarter. Boston Partners now owns 14,802,525 shares of the semiconductor company’s stock valued at $1,040,114,000 after purchasing an additional 4,076,112 shares during the last quarter. Assenagon Asset Management S.A. increased its position in shares of Microchip Technology by 498.0% in the third quarter. Assenagon Asset Management S.A. now owns 2,034,797 shares of the semiconductor company’s stock valued at $130,675,000 after buying an additional 1,694,533 shares in the last quarter. Voya Investment Management LLC increased its position in shares of Microchip Technology by 37.2% in the third quarter. Voya Investment Management LLC now owns 3,361,581 shares of the semiconductor company’s stock valued at $215,881,000 after buying an additional 911,731 shares in the last quarter. Finally, U.S. Capital Wealth Advisors LLC acquired a new position in shares of Microchip Technology during the 3rd quarter worth $3,698,000. 91.51% of the stock is owned by institutional investors and hedge funds.

Microchip Technology News Roundup

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

• Positive Sentiment: Microchip launched production‑ready, full‑stack Edge AI solutions that package MCUs/MPUs, pre‑trained models and developer tools — positioning the company to win real‑time industrial, automotive and IoT design wins. This is a strategic product development story supporting longer‑term revenue growth and better product stickiness. Production-Ready, Full-Stack Edge AI Solutions
• Positive Sentiment: An analyst upgrade (Argus to “strong‑buy”) and recent bullish analyst coverage/price targets support near‑term buying interest and help explain upward momentum. Argus upgrade / Zacks
• Neutral Sentiment: Microchip announced and completed a convertible senior‑notes financing that was initially proposed at $600M, later priced/upsized in public filings ( ~$800M ), and reported in some outlets as $900M of 0% convertible notes. Management says proceeds will optimize capital structure and support growth initiatives, but public reports differ on the final amount — creating some short‑term uncertainty on exact proceeds and use. Upsize and Pricing of $800M Convertible Senior Notes
• Neutral Sentiment: Coverage pieces assessing valuation after the Edge AI push and the convertible offering highlight both upside from new markets and the need to justify a higher multiple — useful context for investors sizing positions. Assessing Valuation After Edge AI Expansion
• Negative Sentiment: Some analysts/commentators argue Microchip’s valuation is already steep, warning that current multiples require continued execution to justify higher targets — a catalyst for profit‑taking if growth or margins slip. Valuation Is Too Steep
• Negative Sentiment: Recent insider selling activity and large institutional reductions (reported by data aggregators) are potential near‑term headwinds for sentiment; watch for further insider or 13F disclosures. Quiver / Insider & Institutional Activity

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.