Microchip Technology Inc. (NASDAQ:MCHP) stock is down during Monday’s premarket session as the company announced plans for a private offering of $600 million in convertible senior notes due 2030.
This news comes as broader markets experienced a mixed performance, with major indices like the Nasdaq and S&P 500 closing lower on the previous trading day.
MCHP Announces $600M Convertible Notes Offering
Microchip Technology revealed its intention to offer $600 million in aggregate principal amount of convertible senior notes, with an option for initial purchasers to buy an additional $90 million. The company plans to use a portion of the proceeds to pay for capped call transactions and to repay outstanding notes under its commercial paper program.
MCHP Stock: Technical Indicators Analysis
The stock is currently trading 1.2% below its 20-day simple moving average (SMA) but is 14.8% above its 100-day SMA, demonstrating longer-term strength. Shares have increased 46.03% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 56.43, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $76.00
- Key Support: $63.50
Upcoming Earnings and Analyst Expectations for MCHP
Microchip Technology Inc. is slated to provide its next financial update on May 7, 2026.
- EPS Estimate: 46 cents (Up from 11 cents YoY)
- Revenue Estimate: $1.26 billion (Up from $970.50 million YoY)
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $84.23. Recent analyst moves include:
- JP Morgan: Overweight (Raises Target to $95.00) (Feb. 6)
- Citigroup: Buy (Lowers Target to $91.00) (Feb. 6)
- Wells Fargo: Equal-Weight (Raises Target to $70.00) (Feb. 6)
MCHP’s Benzinga Edge Scorecard Analysis
Below is the Benzinga Edge scorecard for Microchip Technology, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 0.64) — Trading at a steep premium relative to peers.
- Quality: Neutral (Score: 33.94) — Balance sheet remains healthy.
- Momentum: Bullish (Score: 83.67) — Stock is outperforming the broader market.
Pre-Market Price Movement Analysis for MCHP
MCHP Price Action: Microchip Technology shares were down 0.93% at $75.30 during premarket trading on Monday, according to Benzinga Pro data.
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