Microchip Technology (NASDAQ:MCHP) Shares Gap Down After Analyst Downgrade

Microchip Technology Incorporated (NASDAQ:MCHP) shares gapped down before the market opened on Friday after Citigroup lowered their price target on the stock from $92.00 to $91.00. The stock had previously closed at $78.04, but opened at $74.41. Citigroup currently has a buy rating on the stock. Microchip Technology shares last traded at $75.0370, with a volume of 1,987,291 shares.

A number of other analysts have also weighed in on the company. Mizuho upped their target price on Microchip Technology from $83.00 to $90.00 and gave the stock an “outperform” rating in a report on Friday. JPMorgan Chase & Co. lifted their price target on shares of Microchip Technology from $77.00 to $85.00 and gave the company an “overweight” rating in a research report on Tuesday, January 6th. Rosenblatt Securities lifted their price target on shares of Microchip Technology from $80.00 to $115.00 and gave the stock a “buy” rating in a research note on Friday. B. Riley increased their price objective on Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, January 12th. Finally, Needham & Company LLC boosted their price target on shares of Microchip Technology from $77.00 to $84.00 and gave the company a “buy” rating in a research report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $85.82.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was 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 directly owned 30,089 shares in the company, valued at $1,516,184.71. This represents a 12.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction dated 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 owned 9,922,319 shares in the company, valued at approximately $799,242,795.45. This trade represents a 0.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 121,615 shares of company stock valued at $9,641,654 over the last quarter. 1.94% of the stock is owned by company insiders.

Microchip Technology News Summary

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

• Positive Sentiment: Q3 results beat consensus and showed recovery: revenue was $1.19B (+15.6% YoY) and adjusted EPS $0.44 (beat $0.43). Management set Q4 EPS guidance of $0.480–0.520 and signaled sequential sales growth, which supports a momentum recovery thesis. Microchip Q3 Results Press Release
• Positive Sentiment: Management highlighted automotive and connectivity strength (industrial Ethernet) as drivers of the recovery and flagged ~6.2% sequential sales growth expectations for Q4 — a positive signal for exposure to auto/industrial end markets. Q4 Sequential Growth / Automotive Momentum
• Positive Sentiment: Strategic partnership: Microchip and Hyundai are collaborating to explore Single‑Pair Ethernet (10BASE‑T1S) for vehicles — reinforces auto content opportunities. Hyundai Collaboration
• Positive Sentiment: Capital returns: board declared a $0.455 quarterly dividend (ex‑div Feb 23), supporting income investors and signaling confidence in cash generation. Dividend Announcement
• Positive Sentiment: Bullish analyst activity and positioning: several firms raised price targets (examples include Mizuho, Rosenblatt, Needham) and there was heavy call‑option buying (≈87,550 calls), indicating strong speculative/bullish interest. Analyst Price Target Moves (Benzinga)
• Neutral Sentiment: MarketBeat and other commentary frame Q3 as a technical/earnings inflection (return to growth and improving margins) — useful context for longer‑term thesis but not an immediate price driver by itself. MarketBeat Analysis
• Negative Sentiment: Supply‑side risk: Reuters flagged that Microchip forecasted quarterly profit below some estimates and cited memory‑supply shortages as a headwind — a near‑term risk that can pressure sentiment and margins. Reuters: Profit Forecast / Memory Shortages
• Negative Sentiment: Market reaction and analyst caution: despite the beat, shares pulled back and some analysts remain cautious or trimmed targets (TD Cowen lowered to $70; Truist holds a $68 target), which can limit near‑term upside. Zacks: Shares Drop Despite Beat TD Cowen / TipRanks

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Winnow Wealth LLC acquired a new stake in Microchip Technology during the 3rd quarter worth approximately $25,000. Root Financial Partners LLC bought a new stake in shares of Microchip Technology in the 3rd quarter worth $28,000. Salomon & Ludwin LLC raised its holdings in Microchip Technology by 219.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 479 shares of the semiconductor company’s stock worth $32,000 after buying an additional 329 shares during the period. Quent Capital LLC purchased a new stake in shares of Microchip Technology in the third quarter valued at $32,000. Finally, E Fund Management Hong Kong Co. Ltd. increased its stake in Microchip Technology by 106.8% in the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 517 shares of the semiconductor company’s stock valued at $33,000 after buying an additional 267 shares during the period. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Microchip Technology Price Performance

The company has a market capitalization of $41.08 billion, a PE ratio of -168.98, a P/E/G ratio of 2.00 and a beta of 1.46. The stock has a 50 day moving average price of $69.54 and a two-hundred day moving average price of $65.57. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.01. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the company earned $0.20 earnings per share. The company’s revenue for the quarter 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. Equities analysts forecast that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. Microchip Technology’s dividend payout ratio (DPR) is currently -404.44%.

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.