Zacks Research Upgrades Microchip Technology (NASDAQ:MCHP) to “Strong-Buy”

Microchip Technology (NASDAQ:MCHP) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research firms also recently commented on MCHP. Wells Fargo & Company raised their price objective on Microchip Technology from $58.00 to $68.00 and gave the stock an “equal weight” rating in a report on Wednesday, January 7th. Stifel Nicolaus set a $80.00 price objective on Microchip Technology and gave the stock a “buy” rating in a report on Tuesday, January 6th. UBS Group upped their price objective on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Monday. Bank of America upgraded Microchip Technology from a “neutral” rating to a “buy” rating and set a $95.00 price target on the stock in a research report on Wednesday. Finally, Wolfe Research set a $85.00 target price on shares of Microchip Technology in a research report on Tuesday, January 6th. Three analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Microchip Technology has a consensus rating of “Moderate Buy” and a consensus target price of $82.05.

Microchip Technology Price Performance

Shares of MCHP traded up $5.68 during trading hours on Monday, reaching $80.84. The company had a trading volume of 7,067,585 shares, compared to its average volume of 8,779,939. Microchip Technology has a 12-month low of $34.13 and a 12-month high of $80.94. The company has a market capitalization of $43.69 billion, a price-to-earnings ratio of -178.78, a PEG ratio of 2.21 and a beta of 1.46. The firm has a 50 day simple moving average of $65.78 and a 200-day simple moving average of $65.26. The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same period in the prior year, the business earned $0.46 earnings per share. The business’s revenue was down 2.0% on a year-over-year basis. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Research analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Insider Transactions at Microchip Technology

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,292 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer owned 30,089 shares in the company, valued at $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 available through the SEC website. Also, CEO Steve Sanghi sold 18,509 shares of Microchip Technology stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $79.20, for a total transaction of $1,465,912.80. Following the completion of the sale, the chief executive officer directly owned 10,021,133 shares of the company’s stock, valued at approximately $793,673,733.60. The trade was a 0.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Several hedge funds have recently added to or reduced their stakes in MCHP. Vanguard Group Inc. lifted its holdings in shares of Microchip Technology by 2.1% during the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock worth $4,628,692,000 after acquiring an additional 1,507,554 shares during the period. State Street Corp increased its position in Microchip Technology by 8.5% in the 2nd quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock valued at $2,244,016,000 after acquiring an additional 2,489,258 shares in the last quarter. Invesco Ltd. lifted its holdings in Microchip Technology by 10.4% during the 2nd quarter. Invesco Ltd. now owns 18,452,546 shares of the semiconductor company’s stock worth $1,298,506,000 after buying an additional 1,745,515 shares in the last quarter. Boston Partners boosted its holdings in 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 acquiring an additional 1,406,885 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Microchip Technology by 2.4% during the 2nd quarter. Geode Capital Management LLC now owns 14,842,341 shares of the semiconductor company’s stock worth $1,040,544,000 after buying an additional 343,210 shares during the period. Institutional investors own 91.51% of the company’s stock.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Bank of America upgraded MCHP from Neutral to Buy and set a $95 price target (~18% above current). This upgrade and higher target give institutional and momentum buyers a concrete upside figure to trade around. Finviz BofA Upgrade
• Positive Sentiment: UBS raised its price target to $95 and maintained a Buy rating, which reinforces the upward analyst sentiment and supports higher valuations. Benzinga UBS Note
• Positive Sentiment: Zacks Research upgraded Microchip from Hold to Strong Buy and added MCHP to multiple Zacks Rank #1 lists (momentum and income), increasing visibility to retail and quantitative investors that follow those screens. Zacks Upgrade
• Positive Sentiment: Microchip expanded its maXTouch M1 touchscreen-controller family to cover a broader range of automotive displays (2″–42″), strengthening product exposure to automotive infotainment and ADAS markets—an end market investors prize for growth and pricing power. GlobeNewswire Product Release
• Neutral Sentiment: CEO Steve Sanghi sold 18,509 shares (filed with the SEC). The sale is small relative to his overall stake (~0.18% change) and is being treated as routine by the market rather than a signal of company fundamentals. InsiderTrades Filing
• Neutral Sentiment: Coverage remains mixed overall—while several firms have raised targets and ratings recently, some analysts still carry Hold/Equal-Weight ratings and the MarketBeat consensus target sits near the current price, indicating room for divergence in investor views. MarketBeat Analyst Summary

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.